USD/JPY Forecast: topped at 105.50 after US GDP release

Valeria Bednarik FXStreet

USD/JPY Current price: 105.17

View Live Chart for the USD/JPY

The USD/JPY pair topped at 105.50 this Friday, right after the release of better-than-expected US advanced Q3 GDP. According to preliminary estimates, the economy grew 2.9%, well below previous quarter final reading of 1.4%, r the 2.5% expected. Nevertheless, the pair is retreating towards the 105.00 level ahead of the US opening, with market still trying to figure out what to do next. The pair however, remains at multi-month highs, and the 1 hour chart shows that technical indicators have lost downward strength after reaching their mid-lines, whilst the price remains well above its 100 and 200 SMAs. In the 4 hours chart, technical indicators are retreating modestly from overbought levels, while the price remains well above its moving averages, limiting changes of a steeper decline. Previous weekly high at 104.85 is the immediate support, and the level to break to deny the bullish short term tone.

Support levels: 104.85 104.50 104.10

Resistance levels: 105.50 105.90 106.30

Interested in USD/JPY technicals? Check out the key levels

1. R3 106.73
2. R2 106.04
3. R1 105.67
PP 104.98
1. S1 104.60
2. S2 103.92
3. S3 103.54

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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