USD/JPY: Softer Japan GDP tempers Yen gains – MUFG
|MUFG’s Senior Currency Analyst Lee Hardman notes that weaker Japan Q4 GDP data has stalled recent Japanese Yen strength, with USD/JPY rebounding above 153.00 after briefly trading near 152.27. The growth undershoot, driven by inventories and public investment, has slightly dampened BoJ rate hike expectations, although markets still price further tightening and key USD/JPY support is seen around 152.00 and the 200-day moving average near 150.60.
Soft GDP cools BoJ tightening expectations
"The yen has weakened overnight giving back some of last week’s strong gains."
"The main trigger for the partial reversal of yen strength has been the release of the weaker than expected Q4 GDP report from Japan."
"Still, the loss of growth momentum in the second half of last year has put a dampener on the outlook for growth in Japan at the start of this year."
"The weaker Q4 GDP report has put a dampener on BoJ rate hike expectations encouraging a weaker yen."
"The next important support level for USD/JPY is located at around 152.00 followed by the 200-day moving average at around 150.60."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
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