The US dollar fluctuated in a tight range in the Asian session against the Japanese Yen following developments and economic data followed Wednesday by the Japanese economy, the third largest economy in the world in conjunction with the events of the meeting of the Federal Open Market Committee in Washington and on the eve of the press conference of the Governor of the Federal Reserve Jerome Powell later in the day.
At 06:05 GMT, the USDJPY rose 0.15% to 111.56 compared to the opening levels at 111.39 after the pair reached a high of 111.69 and a low of 111.31.
We have followed the Bank of Japan's release of the minutes of the Bank's meeting held on the 15th of this month, during which it kept interest rates negative at 0.10%, which was expected in the markets at the time, with the release of the statement of monetary policy when he talked about the growing Foreign risk, which threatens to hinder fragile economic recovery, amid signs of weak exports, which saw the largest decline in two years by the beginning of the year.
We note that the weak demand for Japanese exports by China in January followed the slowdown of China's economic growth over the past year at its 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 Japanese central bank's monetary policy makers maintained their view that the economy was moderately expanding, but added in the latest monetary policy statement that "exports and production were affected by the slowdown in overseas growth", except that "the economy was moderately expanding" only in the previous statement, The context, Bank of Japan Governor Haruhiko Kuroda said at a press conference after the meeting on moving forward stimulus to support the economy.
Japan's Economy Minister Toshimitsu Motegi on Tuesday expressed his hope that the Bank of Japan will continue to do its best to meet the inflation target and support the growth of inflationary pressures in the world's third-largest economy, as opposed to Japanese Finance Minister Taro Aso That citizens in his country are not angry about not achieving the inflation target and that there is no need to focus on the inflation target only.
On the other hand, investors are now eyeing the FOMC meeting in Washington on March 19-20 amid expectations that Fed monetary policy makers will keep interest rates at 2.25% to 2.50% and move forward. Cut back on bond purchases of $ 50 billion a month and market pricing to raise the federal funds rate once this year.
Investors are waiting for Federal Open Market Committee members to reveal their expectations for growth and unemployment as well as inflation and the future of interest rates for the next three years ahead of Fed Chairman Jerome Powell's forthcoming press conference, which recently announced the Fed's intention to be patient and monitor economic data before resuming policy tightening. Cash or not
Technical Analysis
The USD / JPY pair opened higher today to test the pivotal resistance 111.67, noting that Stochastic is reaching overbought areas now, awaiting a rebound on the pair to resume the expected bearish trend for the coming period, which depends on stability below the mentioned level.
The awaited negative targets start at 110.76 then 110.35, while the breach of the key 111.67 key resumption of the main trend to move towards areas extending to 113.00 in the near term.
The trading range for today is among the key support at 110.76 and resistance at 112.07
The general trend for today is bearish