USD/JPY bounces off 5-day EMA support on dismal Japanese GDP, bulls need a close above 114.23
- Japanese economy contracted in the third quarter, reinforcing Bank of Japan’s dovish policy stance.
- USD/JPY has bounced off the ascending 5-day EMA, keeping bulls in the game.
- A break above 114.23 (Monday’s doji candle high) is needed to confirm the continuation of the rally.
The bid tone around the USD/JPY strengthened a few minutes before press time, after the Japanese data showed the economy shrank at an annualized rate of 1.2 percent in third quarter.
The drop in the GDP is likely associated with the natural disasters and a slowdown in export growth due to anemic global demand and reinforces Bank of Japan’s (BOJ) view that policy needs to stay accommodative for some time.
As a result, JPY is being offered at press time. The USD/JPY has bounced off the ascending 5-day EMA of 113.78 and is currently trading at 113.91.
The rebound from the bullish short-term EMA is encouraging, however, a only a break above 114.23 would signal a continuation of the rally from the October low of 111.38. It is worth noting that the pair has created back-to-back doji candles, signaling bullish exhaustion. Hence, a close below yesterday’s low of 113.58 could prove costly.
USD/JPY Technical Levels
USD/JPY
Overview:
Last Price: 113.95
Daily change: 18 pips
Daily change: 0.158%
Daily Open: 113.77
Trends:
Daily SMA20: 112.96
Daily SMA50: 112.68
Daily SMA100: 111.95
Daily SMA200: 110.08
Levels:
Daily High: 114.16
Daily Low: 113.58
Weekly High: 114.1
Weekly Low: 112.94
Monthly High: 114.56
Monthly Low: 111.38
Daily Fibonacci 38.2%: 113.94
Daily Fibonacci 61.8%: 113.8
Daily Pivot Point S1: 113.52
Daily Pivot Point S2: 113.26
Daily Pivot Point S3: 112.94
Daily Pivot Point R1: 114.1
Daily Pivot Point R2: 114.42
Daily Pivot Point R3: 114.68
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
