The US dollar fluctuated in a tight range slipping into the Asian session against the Japanese yen following developments and economic data that followed the Japanese economy, the third largest economy in the world and on the brink of developments and economic data expected on Monday by the US economy, the world's largest economy, To Federal Reserve Governor Jerome Powell to Congress.
At 6:18 am GMT, the pair dropped 0.05% to 110.63 from the opening level at 110.69 after recording a low of 110.58 and a high of 110.86.
We have followed the Japanese economy's annual reading of the PPI for services, which showed stable growth of 1.1% in line with expectations, unchanged from the previous year's reading of the previous December, and comes hours after the Governor of the Bank of Japan Haruhiko Kuroda for being discussed with Japanese Prime Minister Shinzo Abe global economic conditions over the weekend.
Kuroda said on Friday that various global economic developments had been discussed with the prime minister and that there were some risks to the Bank of Japan's economic outlook, including trade protectionism, noting that the Bank of Japan has not yet changed its expectations for the continued growth of the world economy. Was planned and that there were no special arrangements for this meeting, adding that the monetary policy was not addressed during the meeting.
Bank of Japan Governor Kuroda told the Japanese parliament on Tuesday that the BOJ was ready to expand stimulus if the strong yen's rise hurt the economy and hampered efforts to push inflationary pressures to the Bank of Japan's target of 2 percent. Between the Bank of Japan's expansionary policies, interest rate cuts and the size of the asset purchase program.
In another context, the Japanese government announced earlier this month a ten-day holiday from Saturday 27 April to Monday, May 6 next to Japan's celebrations of the rise of the new emperor to rule there during that holiday, on the That the Crown will be crowned with the beginning of May, and we would like to point out that this holiday, which will last six full working days, will be the longest in Japan's history.
On the other hand, markets are looking for the US economy to release the final reading of the index of wholesale stocks, which may reflect the stability of growth at 0.3%, unchanged from what it was in the preliminary reading for the month of December, and this comes before we see the participation of Deputy Governor of the Federal Reserve Richard Clarida in a panel discussion entitled "Federal Reserve: A Conversation with Community Leaders in South Dallas" in Texas.
This comes hours before Federal Reserve Governor Jerome Powell's semi-annual testimony on monetary policy before the Senate Banking Committee on Tuesday and before the House Financial Services Committee after Wednesday in Washington before Powell delivered a speech entitled "Economic Developments Marginal and long-term challenges "next Thursday in New York.
Technical analysis:
The USD / JPY pair is showing more volatility around SMA 50, and we see that Stochastic is beginning to cross positively now, which is a positive catalyst that is expected to help push the pair to resume the expected bullishness over intraday and short term, where next target is at 111.56.
Therefore, we will hold our bullish trend on condition that the price remains stable above 110.24.
The trading range for today is expected among the support at 110.00 and the resistance at 111.56
The general trend for today is bullish