Pending inflation figures, the dollar is stagnating. At the same time, the yen is strengthening as stocks decline.

As traders await outgoing Fed Chairman Jerome Powell's nomination hearing, the US Dollar remains near the middle of its recent range against major currencies. The dollar index hit an over-16-month high of 96.88 on November 24 amid a more restrictive tone from Fed policymakers, but the greenback has since remained stuck between that level and 95, 49 despite a continued escalation in the rhetoric that has Wall Street banks now forecasting four quarter-point rate hikes this year.

The yen strengthened yesterday as falling equities boosted safe-haven demand for the Japanese currency. The Australian dollar rose 0.17% to $0.71860, supported by local retail sales figures which were much higher than expected by economists.

The dollar yen fell yesterday and in the very short term is in a phase of correction of its last wave of increase. The pair could retrace to a 38.2% or even 50% Fibonacci retracement near the horizontal support at 114.30.