The US dollar fluctuated in a narrow bullish range during the Asian session to see its rebound for the second session in a row since February 15th against the Japanese Yen following the economic developments and data that followed the Japanese economy, the third largest economy in the world and on the eve of developments and economic data Which is expected Friday by the US economy, the world's largest economy.
At 05:52 am GMT, the pair rose 0.01% to 110.82 compared to the opening levels at 110.81 after the pair reached a high of 110.90 and a low of 110.65.
On the Japanese economy, we saw the National Consumer Price Index (CPI) annual reading, which showed a growth of 0.2% in February, in contrast to expectations of a 0.3% growth rate, while the annual reading of the same index excluding fresh food excluding energy and fresh food Growth slowed to 0.7% from the previous reading and forecasts at 0.8%, and stability at 0.4% in line with expectations.
This came before the world's third-largest industrialized nations saw the initial reading of the Industrial Production Index, which showed a deflation of 48.9 unchanged from last February, worse than expectations of deflation 49.2. We would like to point out that the index's reading of 50.0 or higher reflects the expansion of the sector, while its release of 49.9 or less reflects the contraction of the sector.
The Japanese government announced earlier this month a 10-day holiday from Saturday (27 April) to Monday (6 May) for Japan's celebrations of the new emperor's accession there during the official holiday, Crown Prince at the beginning of May, and we wish to point out that this six-day holiday will be the longest in Japan's history.
On the other hand, investors expect the US economy to release the preliminary reading of the PMI index for the United States for the month of March, amid expectations of the expansion of the industrial sector to 53.5 compared to 53.0 in February, and shrinking service sector to what 55.7 versus 53.0 in February.
To the release of housing market data with the release of the existing home sales index, which may reflect a rise of 3.2% to 5.10 million one against a decline of 1.2% at 4.94 million one in January, in conjunction with the final reading of the index of wholesale stocks, which may The slowdown shows growth at 0.2% versus 1.1% in the January preliminary reading and the previous December reading.
This comes hours after the Federal Open Market Committee's meeting during the March 19-20 meeting to keep interest rates between 2.25% and 2.50% and move forward in reducing bond buybacks until next September as the Commission cuts its growth forecast Its expectations for unemployment rates and the decline in its expectations of raising interest rates this year amid maintaining its expectations to be raised once during the next year 2020.
Technical Analysis
The USD / JPY pair gave positive trading yesterday to test the previously broken neckline of the double top pattern shown in the picture, accompanied by stochastic access to overbought areas, supporting the chances of resuming the bearish trend over the coming sessions. Level 109.40 as next main station.
Keep in mind that the continuation of the bullish trend and the confirmation of a breach of 110.76 will stop the suggested negative scenario and lead the price to start recovery attempts targeting the areas of 111.70 initially.
The trading range for today is expected among the support at 110.00 and the resistance at 111.25
The general trend for today is bearish