The Japanese yen witnessed a decline in early trading on Thursday against a basket of global currencies, losing the rush to rise after recording the highest level in a week against the US dollar, before the release of US economic growth data later today, which may reduce the possibilities of a reduction in US interest rates next March.

The dollar rose against the yen by 0.25% to (147.85 yen), noting that the yen had achieved an increase in trading yesterday, Wednesday, by 0.55% against the dollar, continuing its gains within three days. Still, it witnessed a decline before releasing the expected US economic growth data at a time when Later today.

Note that the yen witnessed significant fluctuations after the decision of the Central Bank of Japan to keep interest rates unchanged and remain in the range of loose monetary policies, followed by the signals provided by the Governor of the Bank of Japan about the possibility of exiting this policy without mentioning an expected date for that.

As he stated the chances of achieving the inflation target of 2% sustainably are gradually increasing. Ueda added that he heard encouraging comments about increasing wages from major companies and that the number of companies that decided to raise wages in the spring wage negotiations of this year is higher. Compared to what happened at this time last year.

As for the growth data of the US economy, it will be released later today, with the preliminary reading of the gross domestic product during the last quarter of last year, as it is expected that these data will provide new pricing for the currently existing possibilities about reducing interest rates by the Federal Reserve in the coming period, which will play a role. It plays a major role in market movements, and we may witness movement based on these expected readings.

Coming to the technical analysis represented by the period for the next four hours, the movement is sideways, and the Relative Strength Index is moving around the fifty levels, coinciding with the MACD movement at zero levels, with the possibility of a positive crossover.

*All data provided is intended for educational or informational purposes only and should not be considered investment advice.