USD/JPY recovers over 40-pips from sub-111.00 level post-US data
|The USD/JPY pair caught some fresh bid at lower level and managed to recover around 35-pips from sub-111.00 level touched in the past hour after mixed US economic releases.
Currently trading around 111.25 region, spot gained some bullish traction after the revised estimate of the US GDP figures revealed that the economy did much better-than previously estimated during the first quarter of 2017. The government raised the growth rate to 1.2% from 0.7% reported earlier and was also better-than consensus estimates pointing to an upward revision to show a growth of 0.9%.
Other macro data released from the US showed durable goods orders fell for the first time in five months, dropping -0.7% in April, but was still better-than expectations (-1.4%). Durable goods orders, excluding transportation items unexpectedly dropped 0.4% m-o-m during the same period.
Today's mixed economic data did provide an initial boost to the US Dollar, but doesn't seem strong enough for any meaningful recovery. Nevertheless, the pair has managed to hold weekly lows support and hence, a possible bout of short-covering, ahead of an extended weekend in the US, might still help the pair to move back into positive territory for the week.
Technical levels to watch
From current levels, immediate resistance is pegged near mid-111.00s, above which the pair seems to aim towards 111.85 resistance en-route the 112.00 handle and 112.20 strong hurdle. On the flip side, renewed weakness back below the 111.00 handle now seems to turn the pair vulnerable to break below the weekly lows support near 110.85 level and head towards testing one-month lows support near 110.25 level.
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