The US dollar fluctuated in a tight range slipping towards the Asian session to see its fifth straight session rebound since March 6 against the Japanese Yen amid tight economic data by the Japanese economy, the world's third-largest economy due to the Spring Equinox holiday. And on the eve of developments and economic data expected Thursday by the US economy, the largest economy in the world.
At 6:01 am GMT, the USDJPY dropped 0.15% to 110.53 compared to the opening levels at 110.70 after the pair hit its lowest level since February 27 at 110.41, while its highest in trading Session at 110.75.
Investors are currently waiting for the US economy to read the Jobless Claims for the week ending March 16th, which may reflect a decrease of 3K to 226K versus 229K. Of the month, down by 8 thousand applications to 1,768 thousand applications against 1,776 thousand applications.
This comes in conjunction with the release of the Philadelphia Industrial Index, which may reflect a widening to 4.6 against a contraction of 4.1 in February, before we see the leading index reading, which may rise 0.1% versus 0.1% January, coming hours after the March 19-20 meeting of the Federal Open Market Committee in Washington.
Fed monetary policy makers have agreed to keep interest rates between 2.25% and 2.50% and move forward with a $ 50bn rebound in bond purchases until September as the Federal Reserve cuts its growth forecast and raises its forecast for rates Unemployment and the decline in the expectations of raising interest rates during the current year, while maintaining their expectations to raise once in the next year 2020.
Technical Analysis
The pair fell strongly against the yen yesterday to succeed in achieving our first target at 110.76, and starts today further down to reach the second goal 110.35, noting that the price completed the formation of a double top model signals the direction of the price to achieve further decline in the short term, The next target reaches the 109.40 areas.
Therefore, we expect the downside movement to continue in the coming sessions if the price does not breach the 110.76 level and stability above it.
The trading range for today is expected among the support at 109.40 and the resistance at 111.00
The general trend for today is bearish