USD/JPY fades the spike above 109.50 on US GDP

  • The pair advances further to the 109.50/60 band, session tops.
  • US 10-year yields rebound to the 2.98% in the wake of the GDP.
  • Flash US GDP figures surprised to the upside for the first quarter.

The greenback now alternates gains with losses vs. its Japanese counterpart at the end of the week, lifting USD/JPY to fresh lows in the 109.50/60 band, just to reced some ground afterwards.

USD/JPY gains capped near 109.60

The pair stays in the area of 2-month tops well beyond 109.00 the figure today after the first estimate of US GDP showed the economy is seen expanding at an annualized 2.3% during the first quarter, surpassing initial forecasts.

Accompanying the move, yields of the key US 10-year benchmark managed to rebound from daily lows and are now flirting with the 2.98% milestone. It is worth mentioning that yields broke above the psychological 3.0% level for the first time since 2014 earlier in the week.

Later in the NA session, the final print of the US Consumer Sentiment tracked by the U-Mich index is due,

USD/JPY levels to consider

As of writing the pair is down 0.02% at 109.28 and a break below 108.90 (100-day sma) would aim for 108.19 (10-day sma) and finally 106.86 (low Apr.17). On the upside, the next hurdle lines up at 109.54 (high Apr.27) seconded by 110.25 (200-day sma) and then 110.48 (high Feb.2).

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