USD/JPY trying to defend 112.00 handle ahead of Trump
|The USD/JPY pair extended its bearish slide and touched a fresh session low near the 112.00 handle following the disappointing release of revised US GDP print.
Currently trading around 112.10-15 region, the pair ran through fresh offers after the US economic data showed economy grew at an annualized pace of 1.9% in Q4, unexpectedly missing expectations pointing to 2.1% growth and unchanged from initial estimates.
Moreover, ahead of today's big event risk - the US President Donald Trump’s first address to a joint session of Congress, cautious investors' sentiment also supported the Japanese Yen's safe-haven appeal and collaborated to the pair's downslide.
After an initial knee-jerk reaction, the pair seems to have stabilized just above the 112.00 handle as market participants eagerly await for some clarity / details about Trump's promised fiscal stimulus measures, which might eventually assist investors to determine the pair's next leg of directional move.
Markets Little Changed as Breakout is Awaited
In the meantime, traders would keep an eye on the release of Chicago PMI and CB's Consumer Confidence Index in order to grab some short-term trading opportunities.
Technical level to watch
Sustained weakness below 112.00 handle is likely to accelerate the slide towards 111.60 important horizontal support, below which the pair seems all set to head towards challenging its next support near 111.10-111.00 region. On the upside, any recovery above 112.30-35 region might now confront resistance near 112.65-70 region, which if cleared is likely to assist the pair towards reclaiming 113.00 round figure mark.
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