USD/JPY: Softer Japan GDP tempers Yen gains – MUFG

FXStreet Insights Team FXStreet

MUFG’s Senior Currency Analyst Lee Hardman notes that weaker Japan Q4 GDP data has stalled recent Japanese Yen strength, with USD/JPY rebounding above 153.00 after briefly trading near 152.27. The growth undershoot, driven by inventories and public investment, has slightly dampened BoJ rate hike expectations, although markets still price further tightening and key USD/JPY support is seen around 152.00 and the 200-day moving average near 150.60.

Soft GDP cools BoJ tightening expectations

"The yen has weakened overnight giving back some of last week’s strong gains."

"The main trigger for the partial reversal of yen strength has been the release of the weaker than expected Q4 GDP report from Japan."

"Still, the loss of growth momentum in the second half of last year has put a dampener on the outlook for growth in Japan at the start of this year."

"The weaker Q4 GDP report has put a dampener on BoJ rate hike expectations encouraging a weaker yen."

"The next important support level for USD/JPY is located at around 152.00 followed by the 200-day moving average at around 150.60."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD remains below 1.1850 after US data

EUR/USD struggles to gain traction and trades in a narrow range below 1.1850 on Wednesday. The US Dollar stays resilient against its rivals following the better-than-expected Durable Goods Orders and housing data, limiting the pair's upside ahead of FOMC Minutes.

GBP/USD stays in narrow channel above 1.3550 ahead of FOMC Minutes

GBP/USD holds its ground following Tuesday's slide and moves sideways above 1.3550 midweek. Although the data from the UK confirmed that inflation cooled in January, the positive shift seen in market mood helps the pair keep its footing as investors wait for the Fed to publish the minnutes of the January policy meeting.

Gold regains some shine, retargets $5,000 ahead of FOMC Minutes

Gold gathers fresh upside traction on Wednesday, leaving part of the weakness seen at the beginning of the week and refocusing its attention to the key $5,000 mark per troy ounce, all ahead of the release of the FOMC Minutes and despite the modest uptick in the US Dollar.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.