The US dollar fell during the Asian session to see its seventh rebound in 11 sessions of its highest since December 20 against the Japanese yen following developments and economic data followed Wednesday by the Japanese economy, the third largest economy in the world and on the threshold of a recent Deputy Governor of the Bank Federal Reserve and a member of the Federal Open Market Committee of Ireland's Lee Brenard.
At 05:57 GMT, the US dollar was down 0.21% at 110.03 from 110.26, after hitting its lowest level since March 25 at 109.90 when the pair tested its lowest. Since the eighth of February last, while the highest during the session at 110.29.
We followed the Bank of Japan's release of the minutes of the BoJ meeting held on April 25, in which the central bank's monetary policy makers agreed to keep interest rates at 0.10% and move on with stimulus policies and monetary easing in their efforts to reach To the inflation target of two percent and support the performance of the world's third-largest economy.
This coincided with the Bank of Japan's annual reading of the monetary base index, which showed a slower pace of growth to 3.1% versus 3.8% in March, exceeding forecasts that the growth rate slowed to 3.6%. The Bank of Japan Has been using this indicator as its main operational target for the cash base scheme since April 2013.
On the other hand, markets are currently waiting for Federal Open Market Committee member Brendard to speak at a community hearing hosted by the Richmond Fed, one week after the Fed decided to keep rates between 2.25% and 2.50% , And to press ahead with a reduction in bond buybacks before they are frozen by September.
Technical Analysis
The USD / JPY pair traded with a strong negative yesterday to reach the key target of 110.08, and the price is under continuous negative pressure coming from the 50 MA to support the break of the mentioned level and the extension of the downside wave to 109.44 as the next major station.
From here, the bearish trend will remain dominant during the coming sessions provided that the price remains steady below 110.86.
The trading range for today is expected among the support at 109.40 and the resistance at 110.86
The general trend for today is bearish