USD/JPY: Rallies beyond 111.00 ahead of Japan GDP

  • USD/JPY crossed 111.00 to flash the fresh 2019 high on early Thursday.
  • Improvements in market risk sentiment on positives for the US-China trade deal and the US government dragged the safe-haven Japanese Yen (JPY) downwards.
  • Trades now await fourth quarter GDP details from Japan for fresh impulse.

The USD/JPY pair marks fresh high of 2019 by extending yesterday's break of 111.00 at the start of Asian trading on Thursday. The pair recently recovered on improved risk sentiment across the board as positive developments on the US-China trade deal and likely avoidance of the US government shutdown played their role. Investors may now look for third quarter GDP details from Japan in order to determine near-term trades while political plays surrounding the trade deal and the US government shutdown can continue offering background noise.

The US President Donald Trump has been on a run up to provide positive comments off-late. Recently, he turned optimistic about having a trade-deal with China and is also ready to see what opposition offers to keep the government running in exchange for full funding for border wall surrounding Mexico. Fox News reported that the White House communicates Trump’s travel to China in March and the President is weighing possibilities regarding the deadline of China trade deal, i.e. March 01 as of now.

Not only optimism concerning the US politics but economic calendar also refrained from dismantling market risk-on. The January month US consumer price index (CPI) MoM slipped to 0.0% against 0.1% forecast and -0.1% whereas the inflation rate bear forecast of 1.5% by rising to 1.6% on a yearly basis. The Core CPI remained unchanged at 0.2% and 2.2% on a monthly and yearly basis respectively.

Moving on, a preliminary reading of fourth quarter (Q4) Japan GDP is next up in the JPY traders’ radar. GDP growth is expected to rise from -0.6% contraction marked in the previous quarter to +0.4% on Q/Q while registering an increase to +1.4% from -2.5% if observing the same quarter of 2017.

While a likely increase in GDP may trigger the USD/JPY pullback, overall sentiment remains favorable to the upside considering positive developments at the US-China trade deal and the US government shutdown.

USD/JPY Technical Analysis

Break of 111.00 opens the gate for the USD/JPY pair’s extended rally to 200-day simple moving average (SMA) level of 111.30 and then to the late-December highs around 111.40. However, 111.80 and 112.25 may challenge the buyers then after.

On the downside, 110.65, 110.30 and 110.00 are likely immediate supports to watch during the pair’s nearby decline whereas 109.80 and 109.50 can guard the south-run afterward.

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD struggling at the lows ahead of US GDP

EUR/USD is trading in the low 1.1100s, consolidating its losses. Markets are stalling ahead of the all-important US GDP report which carries high expectations. Some suspect a "sell the fact" response in reaction to an OK number.

EUR/USD News

GBP/USD recaptures 1.2900 amid the Brexit impasse, ahead of US GDP

GBP/USD is trading slightly above 1.2900, recovering the lost ground after hitting two-month lows. The Brexit impasse weighs as the main parties have not made progress. The anticipation to US GDP limits movements.

GBP/USD News

USD/JPY oscillates in a range above mid-111.00s, key US GDP report awaited

The USD/JPY pair failed to capitalize on the intraday bounce and quickly retreated around 15-20 pips from daily tops touched during the Asian session.

USD/JPY News

US First Quarter GDP Preview: Reasons to be cheerful

US economic growth forecast to be stable in the first quarter. Improved consumer attitudes and retail sales give reason for optimism. Labor market key to economic growth.

Read more

Gold climbs to 1-1/2 week tops, back above $1280 level ahead of US GDP

Gold edged higher on the last trading day of the week and jumped back above $1280 level, just above over one-week tops set in the previous session.

Gold News

majors

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •