The US dollar fluctuated in a narrow bullish range during the Asian session to see its rebound for a fourth consecutive session from its lowest level since February 15 against the Japanese Yen following developments and economic data that followed on the Japanese economy and on the eve of developments and economic data expected on Monday by The US economy is the largest economy in the world.
At 05:47 GMT, the USDJPY rose 0.05% to 111.95 from the opening levels of 111.85 after the pair hit a session high of 112.01 and a low of 111.75.
We followed the Japanese economy to reveal the annual reading of the monetary base index by the Bank of Japan, which showed a slowdown in growth to 4.6% compared to 4.7% in January, exceeding expectations that slowed growth to 4.5% The Bank of Japan has been using this indicator as its main operational target for the monetary base scheme since April 2013.
On the other hand, investors are currently looking for the US economy to release a reading of the construction spending index, which may reflect a slowdown in growth to 0.2% versus 0.8% in November. Fed Governor Jerome Powell noted last weekend that The US economy is in a good position and the Fed will be quiet and watch for economic risks in the coming period.
Technical analysis:
USD / JPY managed to reach the upper limit of the ascending channel, achieving the target we discussed last week, so some correction in the movement is expected to fall towards the support level of 111.37, which is near the 20 MA which will increase the previous support level.
This is reinforced by negative signals from the Stochastic, which is moving in a bearish path and out of the overbought area
The general direction of the sideways movement tends to rise once again if the support remains at 111.37 and the target is to penetrate the ascending channel