USD/JPY on its way to test Wednesday’s low, shrugs off poor GDP
The yen reverses weaker Japanese GDP-led losses and now swung back into positive territory versus, knocking-off USD/JPY to fresh session lows near the mid-point of 113 handle.
USD/JPY back below 5-DMA at 113.74
The dollar-yen pair ran through fresh sellers just ahead of 5-DMA after the US dollar came under renewed selling pressure against its main peers amid fresh sell-off seen in the shorter-duration treasury yields.
Moreover, a retreat in the Japanese stocks from multi-month tops on profit-taking, also weighed on the investor’s’ sentiment, boosting the safe-haven appeal of the yen.
While markets moved past worse-than expected Japanese Q3 final GDP print, while upbeat trade figures from Japan somewhat buoyed the sentiment around the yen. Japan (final) Q3 GDP arrived at +0.3% q/q versus 0.5% expected, and 0.5% preliminary. The major is last seen changing hands near session troughs struck at 113.47, down -0.18% the day.
Focus now remains on the Chinese trade data and the much-awaited ECB policy decision, which is expected to have major impact across the fx board.
USD/JPY Technical levels to watch
The major finds immediate resistance at 113.74 (5-DMA). A break above the last, the major could test 114 (zero figure) and 114.83 (10-month high) beyond the last. While to the
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
