The US dollar fluctuated in a narrow range slipping towards the Asian session to see its fourth session rebound since May 7, and is poised for its fifth weekly loss in six weeks against the Japanese yen following developments and economic data on the Japanese economy. Economic outlook on Friday by the US economy, the world's largest economy.
At 05:58 am GMT, the pair dropped 0.01% to 109.60, compared with the opening levels of 109.61, after reaching a low of 109.48, while recording a high of 109.75.
On the Japanese economy, we saw the National Consumer Price Index (NFP) annual reading, which showed growth accelerated to 0.9% in line with expectations versus 0.5% last March. The annual index of the same index excluding fresh food, excluding energy and fresh food, 0.9% in line with expectations versus 0.8%, and growth accelerated to 0.6% in line with expectations versus 0.4%.
This was before the world's third-largest economy and the third largest industrialized nation reported a reading of the Industrial Activity Index, which showed a drop to 0.4% from 0.2% in February, in contrast to expectations of a 0.1% decline.
On the other hand, investors are currently waiting for the US economy to reveal the Durable Goods Orders, which account for about half of consumer spending, which accounts for more than two-thirds of US GDP, which could reflect a decline of 2.0% versus 2.6% in March , While the core reading of the index itself may show slower growth to 0.1% versus 0.3% in March.
Technical Analysis
The USD / JPY traded with a strong negative yesterday to break the 110.08 level and achieve the first negative target at 109.44, which reinvigorates the downside correctional correction scenario, noting that breaking the current level will push the price around 108.80 directly.
Therefore, the bearish bias will be likely in the coming sessions unless the 110.08 level is breached and stability above it.
The trading range for today is expected among the support at 108.80 and the resistance at 110.08.
The general trend for today is bearish.