The US dollar fluctuated in a tight range slipping into the Asian session to see its rebound from its highest since March 5 against the Japanese Yen amid a lack of economic data earlier this week by the Japanese economy, the world's third-largest economy and on the eve of developments and economic data expected On Monday by the US economy, the world's largest economy.
At 05:45 GMT, the USDJPY dropped 0.07% to 111.93 from the opening levels of 111.95 after the pair reached a low of 111.92 and the highest in six weeks at 112.10.
Investors are looking forward to the visit of Japanese Economy Minister Motji later in the day to the United States for formal trade talks between Tokyo and Washington, which will continue until next Thursday, following the US-led administration of President Donald Trump, Of countries to enter into trade negotiations with Trump management to avoid the outbreak of trade war.
In addition, we would like to point out that the Japanese government recently announced a 10-day holiday from Saturday, 27 April to Monday, 6 May, for the celebration of the rise of the new emperor during the official holiday, Crown Prince at the beginning of May, and we would like to point out that this six-day vacation will be the longest in Japan's history.
On the other hand, markets are looking for the US economy to read the New York Manufacturing Index, which may reflect a widening to 8.1 versus 3.7 last March, coinciding with a CNN-TV interview of a member of the Federal Market Commission Open and President of the Chicago Federal Reserve Charles Evans, before speaking about economics and monetary policy at the New York Business Economics Association luncheon.
Technical analysis:
USD/JPY has reached our key target at 112.14, and we see that the pair is finding strong resistance there, which is the top of last month, as Stochastic is showing negative signs that are pushing the pair lower in the coming sessions.
Therefore, we expect the pair to witness negative trading today, and the breach of 111.83 will confirm the continuation of the decline to test areas 111.44 and 111.00, taking into consideration that the breach of 112.14 will stop the negative scenario and push the price to continue to rise in the short term and open the way to visit 113.10 as the next main target.
The trading range for today is among the key support at 111.10 and resistance at 112.60.
The general trend for today is bearish.