The US dollar fell against the Japanese yen at the beginning of today's session, as economic data weighed on the Japanese economy and economic data awaited the US economy on Thursday. Hours after the Fed's semi-annual testimony to the monetary policy before Congress ended.
The pair dropped 0.15% to 110.83, compared to the opening levels at 111.00, the pair's highest level during the session, while the pair reached a low of 110.80.
The Japanese economy released the preliminary reading of industrial production, which showed a wide decline to 3.7% against 0.1% last December, worse than expectations of a 2.5% decline, while the same index showed stability at zero levels versus 1.9 %, Also worse than the 1.3% forecast.
This was in line with the seasonally adjusted preliminary release of retail sales, which showed a decline of 2.3% from 0.9% in December, worse than expectations of a 0.8% decline. The same annualized reading showed that growth slowed to 0.6% from 1.3% Other than expectations that accelerated growth to 1.4%.
To the release of housing market data, with the annual reading of the Construction Starts Index showing growth slowing to 1.1% compared to 2.1% in the previous year's reading. This is in contrast to expectations of a growth rate of 10.3% Construction rose 19.8% versus a 3.8% decline in December.
On the other hand, the markets are currently looking for the US economy, revealing the preliminary reading of GDP, which may reflect the contraction of the largest economy in the world to 2.6% in the fourth quarter compared to 3.4% in the third quarter, and may show the preliminary reading of GDP measured in prices Over the previous quarter, slowing growth to 1.7% versus 1.8% in the third quarter.
This comes in conjunction with the reading of the index of claims for the week of February 23, which may reflect a rise of 5 thousand applications to 221 thousand applications compared to 216 thousand applications in the previous weekly reading, before we see the disclosure of the Chicago Purchasing Managers Index May reflect a widening to 58.1 versus 56.7 in January.
Technical analysis:
The US dollar rose yesterday as the Japanese yen yesterday to the level of resistance 110.96 to bounce down with the opening session today, under the negative impact of the Stochastic index, which reached the saturation of the purchase and went out of them down.
The moving averages have stopped falling as they constitute price support levels as they move below it in the ascending order
The general trend is to the upside as long as the trading remains above 110.24 and the resistance is breached at 110.96
The trading range between the support at 110.14 and the resistance at 111.37