USD/JPY sideways but choppy ahead of Japan GDP

USD/JPY getting shaky ahead of Japan GDP figures.
US Dollar still in decline mode.

Joshua Gibson FXStreet

USD/JPY is trading slightly down in the Asia session, testing 107.80 following some post-New York back-and-forth. USD/JPY has been declining for a stretch, with the US Dollar falling for four of the past five weeks against the Yen.

Japan will be releasing their GDP figures today at 23:50 GMT for the 4th quarter of 2017, with market forecasts widely expecting a contraction in inflation growth for the Japanese economy, with quarter-on-quarter forcasts at 0.2% opposed to the previous 0.6%, and year-on-year data for the period anticipated flat at 0.0% versus the previous reading of 0.1%. Analysts also expect annualized GDP to print at a stunted 0.9%, versus 2.5% for the previous period. Impact can be expected to be fairly muted, as the Bank of Japan (BoJ) have been warning about an economic slowdown to show up in data heading into 2018.

USD/JPY Technicals

Intraday action will be capped for now by resistance at 108.28, while a bearish move will have to contend with major support at 107.30. Long-term, swing resistance is priced in at 108.60, followed by 110.20, while a break below 107.30 will see price trading into fourteen-month lows, unchallenged until the next major support zone at 106.25.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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