The problem is a faulty contact from the touchscreen leading to the phone board.
On the right side of the phone were the volume buttons are, under the touchscreen is the screen's contact. Try "detaching the screen's face a little from the phone body exactly at the volume down button(using your fingernail or something) and see if the touchscreen is responding in anyway. Now try to pull a little bit the touchscreen frame from the rest of the chassis and see if it works.
Be careful though not to totally destroy your phone...
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