The US dollar fluctuated in a tight range slipping into the Asian session against the Japanese yen following economic developments and data that followed the Japanese economy, the third largest economy in the world and on the eve of developments and economic data expected Thursday by the US economy, the largest economy in the world.
At 05:46 GMT, the USDJPY dropped 0.13% to 109.46 compared to the opening levels at 109.60, the pair's highest level during the session, while the pair reached a low of 109.34.
We followed the Japanese economy to reveal inflation data with the release of the producer price index, which is a preliminary index of inflationary pressures, which showed a stable growth of 0.3%, unchanged from last March, surpassing expectations that indicated the contraction of growth to 0.2%, while the annual reading of the same index showed a slowdown in growth to 1.2% compared to 1.3%, exceeding expectations of 1.1%.
On the other hand, investors are currently waiting for the US economy to release the index of claims for the week ending May 11, which may reflect a decline of 8 thousand requests to 220 thousand requests compared with 228 thousand applications in the previous weekly reading, Investors' applications for the fourth week of this month fell 4K to 1,680K versus 1,684K.
This is in conjunction with the disclosure of housing market data and the reading of the Construction Starts Index and Construction Permit, which may reflect an increase during April. Building permits are expected to rise 1.4% to 1,287 thousand versus 1.7% In March. Existing homes may also rise 6.2% to 1,209,000 versus 0.3% at 1,139,000.
Markets also look to the world's largest industrial nation to see the Philadelphia Industrial Average read out, which could reflect a widening of 10.0 versus 8.5 in April, and the upcoming talk by Federal Reserve Vice President and Federal Open Market Committee member Ellen Bernard about expectations For economic and monetary policy at the annual symposium of the National Association of Taxation in Washington.
The USD / JPY pair attempted to break the 109.44 level, but is back above it. Negative pressure from the SMA 50 remains intact, awaiting the resumption of negative attempts and targeting the 108.80 level which is our next major stop.
All in all, we will maintain our bearish outlook unless the 110.08 level is breached and stabilized above it.
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 bearishfor today is bearish