USD/JPY continues to bounce off 4-month high

The US dollar fluctuated lower in a tight range during the Asian session, to see its rebound for the fourth session from the highest since December 20th against the Japanese Yen, following developments and economic data that got released on Wednesday by the Japanese economy, the third largest economy in the world and amid a lack of economic data from the US economy, the world's largest economy.

As of 06:59 GMT, USD/JPY dropped 0.03% to 111.83 compared to the opening levels at 111.86 after the pair reached a low of 111.75 and a high of 111.98.

We have followed the Japanese economy's annual reading of the services price index, which showed stability of 1.1%, unchanged from the previous reading of February, in line with expectations, and this was before we see the reading of the index of all industrial activities which showed a 0.2% fall in line with expectations versus stability at zero levels in December.

This comes hours before the BoJ meeting scheduled tomorrow, Thursday, in Tokyo. Where the central bank's monetary policy makers are expected to keep short-term benchmark with short-term interest rates moving forward with stimulus policies and monetary easing to support the performance of the world's third-largest economy and to stimulate the growth pressure of inflation to reach the target of the bank at 2%.