The US dollar fluctuated in a narrow range that tends to decline during the Asian session, to witness its lowest since the ninth of November against the Japanese yen amid scarce economic data by the Japanese economy and on the cusp of economic developments and data expected today, Thursday, by the US economy, the largest economy in the world, and amid Markets are looking for US lawmakers to approve a new fiscal stimulus.
At exactly 06:52 am GMT, the US dollar against the Japanese yen declined by 0.12% to 103.35 levels compared to the opening levels at 103.47, after the pair achieved its lowest level in five weeks at 103.25, while it achieved its highest during the session's trading at 103.56 .
Investors are currently waiting for the US economy to see the release of the aid claims index reading for the past week on December 12th, which may reflect a decrease of 36 thousand requests to 817 thousand applications compared to 853 thousand applications in the previous reading, and the reading of continuous aid requests for the week may also appear. Last month, on the fifth of this month, there was a decrease of 159 thousand requests to 5,598 thousand applications compared to 5,757 thousand applications.
This comes in conjunction with the disclosure of housing market data, with the release of the housing starts index and the building permit index reading, and amid expectations that the building permits reading will reflect an increase to about 1.55 million permits, compared to about 1.54 million permits in October. Home start-ups were stable at around 1.53 million homes last November.
This also comes in conjunction with the disclosure by the largest industrial country in the world of industrial sector data, with the release of the Philadelphia Industrial Index reading, which may reflect a contraction of the expansion to a value of 20.1 compared to 26.3 in November. Otherwise, we followed a short while ago the end of the meeting. The Federal Open Market Committee December 15-16, during which interest rates were kept at an all-time low between zero and 0.25%.
In the same context, Fed Governor Jerome Powell yesterday, during the press conference held after the end of the Fed’s meeting, expressed the argument for a “very, very strong” financial stimulus, and it came amid markets looking for US lawmakers to adopt a new stimulus package to counter the negative repercussions of the severity of the outbreak The second wave of Corona virus in recent times.
Technical analysis
The dollar versus the yen provided temporary positive trades yesterday and tried to breach 103.65, but we notice that the SMA 50 formed a strong resistance against the price, to bounce down and settle below the aforementioned level again, which keeps our bearish expectations valid for the coming period, targeting 103.00 levels Then 102.50 as next major stops.
In general, we will continue to suggest the bearish trend unless the 103.65 level is breached and stability above it.
The expected trading range for today is between 102.50 support and 103.80 resistance
The expected general trend for today: Bearish