The US dollar fluctuated in a tight range slipping into the Asian session to see its rebound from its highest since March 6 while it is still resuming its weekly gain for the fifth week in six weeks against the Japanese Yen following the Bank of Japan's decisions and guidance on the eve of the upcoming economic developments and data. On Friday by the US economy, the world's largest economy.
At 06:06 GMT, the USDJPY dropped 0.04% to 111.66 from the opening levels at 111.70 after recording a low of 111.49 and a week high of 111.90.
We followed the BOJ's decision to hold negative interest rates at 0.10%, which was expected in the markets, coinciding with the release of the monetary policy statement in which BOJ monetary policy makers expressed growing external risk that threatens to impede the fragile economic recovery, Amid signs of weak exports, which is the nerve of the world's third largest economy, which saw its biggest drop in two years by the beginning of the year.
We note that the weak demand for Japanese exports by China in January followed the slow growth of the Chinese economy in the past at the lowest pace since 1990 as a result of the US-China trade war following Washington under the leadership of US President Donald Trump For trade protectionism, may eventually weigh heavily on industrial production in Japan, which has seen its worst performance in the year.
The central bank's monetary policy makers maintained their view that the economy was moderately expanding, but added in the statement of monetary policy that "exports and production were affected by the slowing growth abroad", in contrast to "the economy was moderately expanding" only in the previous statement. , Governor of the Bank of Japan Haruhiko Kuroda said at a press conference after the meeting on moving forward stimulus to support the economy.
On the other hand, the markets are currently looking for the US economy to release the New York Manufacturing Index, which may reflect a widening to 10.1 vs. 8.8 in February before the world's largest industrial producer is reading the Industrial Production Index May show a 0.4% rise versus a 0.6% drop in January, and the energy utilization index showed accelerated growth to 78.5% versus 78.2%.
Leading to the first reading of the University of Michigan consumer confidence index, which may reflect a widening to 95.5 versus 93.8 in February with the release of consumer expectations for inflation for one year to come and five years ahead, in conjunction with the publication of a statistical employment opportunities and job rotation that may Reflecting a decrease to 7.27 million versus 7.34 million last December.
Technical Analysis
The pair opened today's trading session with a significant drop to test the support of the ascending channel appearing in the picture, and the pair is rising again and moving above 111.67, keeping the bullish scenario intact so far, waiting for initial testing at 112.07, Rising wave to reach 113.00 as the next target.
Therefore, we will maintain our bullish trend unless 111.00 is broken and stability below it.
The trading range for today is among the key support at 111.00 and resistance at 112.50
The general trend for today is bullish