- Japan to release its Q4 GDP, seen up by just 0.2% in the three months to December.
- Yields continue to swing wildly, down for the day.
The USD/JPY pair fell to 107.40, its lowest level since September 2017, on the back of broad dollar's weakness, this last triggered by retreating US Treasury yields after peaking at fresh four year highs on Monday. BOJ's Kuroda gave a speech at the beginning of the day, reiterating that the ongoing easing program will remain in place until the 2% inflation is achieved, but investors ignored his words, which opposed to the latest reduction of the amount of bond-buying. The country released its January Domestic Corporate Goods Price Index which came in-line with market's expectations up 0.3% MoM an 2.7% YoY. More relevant, Japan will release its Q4 GDP this Wednesday, with the economy seen growing just 0.9% in the three months to December, after a 0.6% previous gain. In the meantime, US Treasury yields swung all through the day, ending it modestly lower. The pair, however, bounced modestly, holding on to its daily losses and technically bearish according to the 4 hours chart, as the price is further below its 100 and 200 SMAs, while indicators are barely bouncing from oversold readings. The immediate resistance is the previous weekly low at 108.04, while a critical support comes at 107.31, 2017 yearly low.
Support levels: 107.30 106.80 106.50
Resistance levels: 108.05 108.40 108.80
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