The Japanese yen rose against the US dollar in the Asian session following economic developments and data released by the Japanese economy ahead of economic data expected Tuesday by the US economy, the largest economy in the world with anticipation of the Fed's midterm testimony to the US Federal Reserve.
In the Asian session, the USDJPY dropped 0.05% to 110.63 from the opening levels of 110.69 after the pair reached a low of 110.58 and a high of 110.86.
The Japanese economy released inflation data with the core CPI, which showed an improvement in growth to 0.5% from 0.4% in November but below expectations of 0.6%. This came hours after Bank of Japan Governor Haruhiko Kuroda For being discussed with Japanese Prime Minister Shinzo Abe global economic conditions over the weekend.
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.
From the US economy, we look forward to the release of the housing market data with the reading of the Construction Starts Index and Building Permits, which may give a low reading during December, where construction permits are expected to show a 2.8% drop to 1,290,000 versus 5.00% at 1,328K , And the index of newly constructed houses may show a drop of 0.5% at 1,250,000 versus a rise of 3.2% at 1,256,000.
Ahead of the home price index reading, which could reflect slowing growth to 0.3% from 0.4% in November, and the upcoming event today, Federal Reserve Governor Jerome Powell's semi-annual policy statement to the Senate Banking Committee, before completing his half- Annual meeting on Wednesday with his appearance before the Financial Services Committee in the House of Representatives.
Today, at a later date, we expect the consumer confidence reading for February to rise to 124.3 from 120.2 in January, with the reading of the Rachamond Industrial Index which may give a reading of 8 versus a contraction of 2 in January.
Technical analysis:
The Japanese Yen failed to stabilize above the resistance level of 110.96 to revert to the previous track between 110.59 support and 110.95 resistance.
In general, we are on a side track with attempts to climb.
The moving averages support the price to the upside as there is a bullish order under the price supported by the renewed high.
The statistic is in a bearish path in a reversal of price action towards the oversold area.
The expected movement between 110.59 support and 110.92 resistance in a sideways trend tends to prevail
Support and Resistance:
Support: 110.59-110.14
Resistance: 110.96-111.37