Japan GDP misses expctations by 0.1% QoQ

Ross J Burland FXStreet

Japan's Gross Domestic Product has been released that was expected to contract -1.2% in Q1, due to the state of emergency constraining household activity over the quarter.

The data arrived as follows:

Japanese GDP SA (QoQ) Q1: -1.3% (exp -1.2%; prev 2.8%), which is the first QoQ contraction in 3 quarters.

GDP Annualised (QoQ) Q1: -5.1% (exp -4.6%Q; R prev 11.6%). This marked the biggest fall on record.

Additionally: Private consumption posts first qtr/qtr decline in 3 quarters;

Exports post third straight quarter of increase;

Consumption mainly fell for dining outs, automobiles according to a government official.

USD/JPY technical analysis

As per the prior analysis, USD/JPY Price Analysis: Bullish commitments tested at daily support, the price is ripening for an upside extension:

USD/JPY daily chart

4-hour chart

About GDP

The Gross Domestic Product released by the Cabinet Office shows the monetary value of all the goods, services and structures produced in Japan within a given period of time.

GDP is a gross measure of market activity because it indicates the pace at which the Japanese economy is growing or decreasing. A high reading or a better than expected number is seen as positive for the JPY, while a low reading is negative.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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