The US dollar fluctuated in a narrow range tilted towards a decline during the Asian session against the Japanese yen, after the economic developments and data that were followed on Monday by the Japanese economy and amid scarce economic data early this week by the US economy, the largest economy in the world, and in the wake of US President Donald Trump's signature on Corona Pandemic Relief Bill and a $ 2.3 trillion government funding package.
At exactly 07:02 AM GMT, the US dollar against the Japanese yen fell by 0.12% to 103.44 levels compared to the opening levels at 103.56, after the pair achieved its lowest level during the session's trading at 103.41, while it achieved its highest at 103.64. The pair started the session on a rising gap after ending last week’s trading at 103.43 levels.
The Japanese economy has followed up on the disclosure of the industrial sector data with the release of the preliminary reading of the industrial production index, which showed stability at zero versus 4.0% growth last October, contrary to expectations that indicated a slowdown in growth to 1.4%, while the annual reading of the index indicated The same widening decline to 3.4% compared to 3.0%, contrary to expectations that indicated a widening decline to 10.0%.
This coincided with the Bank of Japan's disclosure of the Opinion Summary report of its last meeting, which was held on December 17-18, in which it decided to keep interest rates negative at 0.10% amidst the assurance that additional steps will be taken for monetary easing if necessary. Today, the report stated that the Bank of Japan must once again conduct a comprehensive review of the strategy it must take in achieving its inflation target.
On the other hand, we have just followed the signature of US President Trump, whose term ends on January 20, next, on the new relief bill to confront the repercussions of the Corona pandemic ($ 892 billion) and the government funding package ($ 1.4 trillion) reached by Congress. Last Tuesday, after months of negotiations, lawmakers from the poles of American politics, the Republican Party and the Democratic Party.
The signature of the forty-fifth US President Trump on the Corona Pandemic Relief Bill and government funding worth $ 2.3 trillion comes several days after he received it from Congress and in the wake of his prior hinting to use the right to "veto" criticism against the Pandemic Relief Bill, and we would like to point out that it has The deadline to prevent nearly 14 million Americans from losing temporary supplementary unemployment benefits passed the $ 300 per week that passed Saturday.
With the signing of the US President Trump on the relief bill, the measures and expanded benefits for the unemployed will continue until next March, but it is expected that millions of unemployed will lose a week of those benefits that are given to them because of Trump's delay in expecting, and also by signing a package Government funding The government shutdown scenario in the United States, which was supposed to happen on Tuesday, had not been signed.
Technical analysis
The dollar against the yen did not show any strong movement in the past sessions, to maintain its stability below the 103.65 level, and therefore, the bearish trend scenario will remain intact as it is unchanged, relying on stability below the mentioned level, reminding you that our next main target is at 102.50.
The expected trading range for today is between 102.70 support and 104.00 resistance
The expected general trend for today: Bearish