The US dollar fluctuated in a narrow bullish range during the Asian session to see its rebound for the third session of its lowest since early February against the Japanese yen following developments and economic data that followed the Japanese economy, the third largest economy in the world and on the eve of developments and economic data expected Wednesday By the US economy, the world's largest economy.
At 06:02 GMT, the greenback was up 0.06% at 109.68 from the opening level at 109.61, after reaching a high of 109.69 and a low of 109.52.
We followed the Bank of Japan's release of the annual reading of the Bank of Japan's M2 lending index, which showed growth accelerated to 2.6% from 2.4% in March, in contrast to expectations of a 2.3% slowdown in growth, Of the machinery equipment demand index, which showed a widening decline to 33.4% versus 28.5% in March.
On the other hand, investors are currently waiting for the US economy to reveal a reading of retail sales, which accounts for about half of consumer spending, which accounts for more than two-thirds of US GDP, which could reflect slowing growth to 0.2% from 1.6% in March. The core reading of the index itself shows a slowdown in growth to 0.7% from 1.2% in March.
This comes in conjunction with the release of the New York Industrial Index, which may reflect the contraction of the breadth to 8.2 against 10.1 last April, and before we also see the largest industrial country in the world published the Industrial Production Index, which may show stability at zero levels Up from 0.1% in March, while the Energy Use Index may show slowing growth to 78.7% from 78.8% in March.
To Federal Reserve Vice Governor Randall Quarles' testimony to the Senate Banking Committee's oversight and regulation before we see the housing index reading by the National Association of Home Builders, which may reflect a widening to 64 versus 63 in April, The reading of wholesale inventories, which may show stability at zero levels, versus 0.3% in February.
The USDJPY gave the pair a positive trading yesterday to breach 109.44 and settle above it, which might push the price to test the most important resistance at 110.08 before reversing again, noting that SMA 50 meets the mentioned resistance to add more strength to it, while Stochastic Negative signals are now clear.
Therefore, we believe that opportunities are available for resuming the bearish correction during the coming sessions, targeting the level of 108.80 as the next major station, which requires stability to remain below 110.08.
The trading range for today is expected among the key support at 108.80 and the resistance at 110.20
The general trend for today is bearish