USD/JPY mildly weaker, but holds above 111.00 handle; US GDP eyed

The USD/JPY pair edged lower on Friday and eroded part of previous session's up-move, albeit has managed to hold its neck above the 111.00 handle.

The Japanese Yen got a safe-haven boost following the US President Donald Trump's comments on the geopolitical conflict in the Korean peninsula. Trump said that a major conflict with N. Korea is possible, although he wants the crisis to be resolved peacefully.

Meanwhile, market seems to have largely ignored mixed Japanese economic data - national CPI, industrial production and household spending missing expectations, while retails sales, jobs and Tokyo CPI printing stronger-than expectations reading.

• Japan: Core inflation still on uptrend – Nomura

Against the backdrop of recent disappointments from the incoming US economic data, including Thursday's dismal durable goods orders data, investors now await the release of US advance Q1 GDP figures for some fresh impetus.

• US: Q1 GDP tracking estimate lowered by 0.6pp to 0.2% from 0.8% - Nomura

In the meantime, the broader market risk-sentiment would remain an exclusive driver of the pair's movement through Friday's trading session.

Technical levels to watch

Immediate support is pegged near the 111.00 handle, below which the pair is likely to accelerate the slide back towards 110.60-55 horizontal support ahead of the key 110.00 psychological mark. On flip side, momentum above 111.35 level (session top) might continue to face fresh support near 111.60-80 region, which if cleared decisively has the potential to lift the pair beyond the 112.00 handle towards testing 112.20 hurdle (March 31 high).

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.