The US dollar fluctuated in a narrow range slipping towards the Asian session, where the lowest level since Jan. 10 against the Japanese Yen following the economic developments and data that followed on the Japanese economy and on the eve of developments and economic data expected Tuesday by the US economy, Governor of the Federal Reserve Jerome Powell.
At 6:19 am GMT, the greenback was down 0.18% to 107.88 from the opening levels at 108.07 after a five-month low of 107.86, while the highest at 108.09.
We followed the Japanese economy to reveal the annual reading of the Bank of Japan's monetary base index, which showed accelerated growth to 3.6% from 3.1% last April, surpassing forecasts that accelerated growth to 3.2%. Japan has been using this indicator as its main operational target for the monetary base scheme since April 2013.
On the other hand, investors are looking forward to introducing Fed Chairman and Federal Reserve Chairman John Williams to the opening remarks at the event hosted by the Bank of New York Federal Reserve before we see the upcoming talk of Federal Reserve Governor Jerome Powell about the Fed's policy strategy, tools and communication practices At the event hosted by the Chicago Fed.
Leading to the release of the factory demand index, which may reflect a 1.0% drop from 1.9% in March. This comes hours before the Beige report, which is important as it was issued two weeks before the FOMC meeting, The Federal Committee in their decisions and directions to stimulate and support the pace of growth and the US labor market in addition to achieving inflation target at 2%.
Technical Analysis
USDJPY succeeded in achieving our awaited target at 108.00 and is stabilizing, noting that the price is pressuring this level in an attempt to break it, supporting expectations for a short-term downtrend, paving the way for a target of 106.75 as the next major station.
Therefore, the bearish bias will remain in place for the coming period provided that the price remains stable below 108.80.
The trading range for today is among the key support at 107.20 and resistance at 108.50.
The general trend for today is bearish.