The US dollar moved in a narrow bullish range during the Asian session to see a rebound to the fourth session in five sessions from its lowest since February 15 against the Japanese yen amid a lack of economic data by the Japanese economy, the third largest economy in the world and on the eve of developments and economic data expected Tuesday By the US economy, the world's largest economy.
With the opening of the Asian session, the USDJPY rose 0.15% to 111.92, compared with the opening levels at 111.74 after the pair reached a high of 111.95 while the lowest at 111.72.
Japanese Prime Minister Shinzo Abe expressed his belief that the economic and monetary policy has succeeded and that he trusts in the management of Bank of Japan Governor Haruhiko Kuroda of monetary policy, explaining that without strong monetary policy Japan could not be able to overcome inflationary deflation, adding that his government Trust the ability of the BOJ Governor Kuroda to manage the monetary policy file.
The Bank of Japan Governor Kuroda said his country's economy was no longer in recession, noting that corporate innovation weighed on inflationary pressures and that the Japanese central bank took action in July to improve conditions. Regional banks have plenty of money And that there is a need to continue to be banks in turn as a financial intermediary, explaining that the Bank of Japan will maintain its expansionary monetary policies.
From the US economy we await the release of Markit's final index from the US, which may reflect the stability of the widening at 56.2 vs. 54.2 in January.
And the index of the Institute of Supply Services, which may show a breadth to 57.4 compared to 56.7 in January, and we would like to point out that the service supply is important in the fact that the service sector in America represents more than two thirds of GDP, in conjunction with the disclosure of data The housing market and the release of new home sales, which could reflect a decline of 8.7% to 590 thousand against a rise of 16.9% at 657 thousand in December.
Technical Analysis
The USD / JPY pair rebounded upwards after testing the 61.8% Fibonacci retracement of the recent bullish wave seen in the image, as the pair resumed its main ascending channel, which is conjoined within the main ascending channel, awaiting a visit to 112.65 and then 113.70 mainly.
Stochastic offers a positive cross signal to support the expected rally, which will remain intact with stability above 111.65.
The trading range for today is among the key support at 111.40 and resistance at 112.90
The general trend for today is bullish