The US dollar fell during the Asian session to see its rebound for the second consecutive session of its highest since March 22 against the Japanese yen amid a lack of economic data by the Japanese economy, the third largest economy in the world, and on the eve of developments and economic data expected on Thursday by the US economy, including the FOMC members.
At 06:05 GMT, the USDJPY dropped 0.40% to 110.07 from the opening levels at 110.51 after the pair hit a session low of 110.05 and a high of 110.53.
Investors are looking forward to what Federal Reserve Vice Governor and Federal Open Market Committee (FOMC) Chairman Randall Quarles will talk about on the Financial Stability Board's agenda at the European Central Bank's policy conference in Frankfurt. It may reflect a rise of 1K to 222K.
In parallel to the reading of GDP reading, which may reflect the contraction of the largest economy in the world to 2.4% compared to 2.6% growth in the previous preliminary reading for the fourth quarter compared to the expansion of 3.4% in the third quarter, while the same index may reflect the price stability of growth at 1.8%, unchanged from the previous preliminary reading for the fourth quarter and the previous reading for the third quarter.
To show housing data, which may reflect slower growth of existing home sales 0.1% from 4.6% in January. The Federal Reserve cut its growth forecast, raised its forecast for unemployment and dropped its expectations for a rate hike this year amidst the province. On its expectations of raising it once next year, with its confirmation of interest stabilization and the end of the reduction of bond repurchases in September.
Technical analysis:
The USDJPY pair rebounded significantly after retesting 110.76 yesterday to reach our first target at 110.08. As noted in our latest report, the pair needs to breach this level to confirm the rally towards our next target at 109.40.
From here, our bearish outlook remains effective for the coming period supported by the negative pressure formed by SMA 50 with stability below 110.76 - 110.86 important for the continuation of the expected decline.
The trading range for today is expected among the support at 109.40 and the resistance at 110.76
The general trend for today is bearish