The US dollar fluctuated in a narrowly bullish range during the Asian session to see its rebound for a second straight session since February 8 against the Japanese yen following developments and economic data followed Tuesday by the Japanese economy, the world's third-largest economy, The Federal Open Market Committee (FOMC) and the Federal Reserve Chairman of the Federal Reserve Bank of the United States (EER) Roskernen in Hong Kong and on the eve of economic developments and data expected Tuesday by the US economy, the world's largest economy.
At 05:54 GMT, the USDJPY rose 0.15% to 110.14 compared to the opening levels at 109.97 after the pair hit a session high of 110.24 and a low of 109.94.
We followed the Japanese economy by revealing the Bank of Japan's summary report in conjunction with the annual reading of the PPI for services, which showed growth accelerated to 1.1% from 1.0% in January, to the detection of inflation data with the reading Core CPI, which showed a slowdown in growth to 0.4% vs. 0.5% in January.
The markets are also looking ahead to the US economy to release housing market data with the Housing Starts and Building Permits reading, which may reflect a decline in February, where building permits are expected to drop 1.3% to 1,300,000 versus a rise 1.40% at 1,345 thousand, and the index of construction starts may show a decline of 0.8% at 1,220 thousand homes against a rise of 18.6% at 1,230 thousand homes.
This comes ahead of the reading of the Home Price Index, which may reflect the acceleration of growth to 0.4% versus 0.3% last December, leading to the Consumer Confidence reading, which may reflect a widening to 132.1 vs. 131.4 in February, In conjunction with the release of the Rachamund Industrial Index, which may show a widening contraction to 12 versus 16 in February.
Technical analysis:
The USD/JPY pair has fluctuated around the 110.08 level since yesterday, which represents the previously broken 38.2% Fibonacci level, while SMA 50 continues to press the pair negatively, so the negative effect of the previously completed double top pattern remains effective, Which targets 109.40 and then 108.80 as the next major stops.
Keep in mind that a rally up and breaching 110.76 - 110.86 will stop the suggested bearish wave and push the price back to retrace the upside move again.
The trading range for today is expected among the support at 109.20 and the resistance at 110.70.
The general trend for today is bearish.