USD/JPY Current price: 110.16
- USD/JPY confined to a 40 pips' range above the key 110.00 figure.
- Japanese GDP fell in Q1, ending the longest run of growth in nearly three decades.
The USD/JPY pair is little changed daily basis, holding above the 110.00 level, but below the monthly high achieved late Tuesday at 110.45. US Treasury yields were once again the main motor of the pair, which had a quieter day, hovering around multi-year highs. The yield on the 10-year Treasury note held around 3.09% with an intraday low of 3.06%, providing little clues to USD/JPY traders. In the data front, Japan released at the beginning of the day it Q1 GDP, quite a disappointment as it printed -0.2%, while the annualized reading came in at -0.6%, ending Japan’s longest run of economic growth in nearly three decades, as the economy grew in the previous eight quarters. Japanese industrial production, however, picked up in March, advancing 1.4% MoM and 2.4% YoY. Mixed US data and steady yields limited the upside for the pair, which seems poised to correct lower, despite intrinsically bullish, according to technical readings in the 4 hours chart, as the pair remains firmly above bullish moving averages and a daily ascendant trend line, while technical indicators keep retreating from overbought levels. A corrective movement could come with a break of 110.00, exposing then the 109.60, where the next line of buyers is waiting.
Support levels: 110.00 109.60 109.25
Resistance levels: 110.45 110.90 111.20
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