• US Q3 GDP revised higher to show 3.3% annualized growth.
• Risk-on mood weighing heavily on JPY’s safe-haven appeal.
• Surging US bond yields provides an additional boost.
The USD/JPY pair continued scaling higher through the early NA session and managed to move past the 112.00 handle post-US GDP revision.
The US Dollar got a minor boost after the US GDP was revised higher to show economic growth of 3.3% (annualized rate) during the third quarter of 2017, slightly better than 3.2% expected and also stronger than 3.0% reported in the original estimates.
The positive reading, along with a sharp upsurge in the US Treasury bond yields, following the outgoing Fed Chair Janet Yellen's testimony, provided an additional boost to the pair's goodish recovery move from Monday's 2-month lows.
Meanwhile, the prevalent risk-on mood, as depicted by strong gains across equity markets despite North Korea's latest ballistic missile test, was also seen weighing heavily on the Japanese Yen's safe-haven appeal and further collaborated to the pair's stronger up-move to one-week tops.
Technical outlook
Valeria Bednarik, American Chief Analyst at FXStreet writes: "Technically, the pair presents a modest bullish stance, as in the 4 hours chart, technical indicators entered bullish territory and head higher, although with limited momentum, as the price remains far below its 100 and 200 SMAs with the shortest currently around 112.50. The pair needs to accelerate through the current level to be able to continue advancing, firstly towards 112.00 and later towards 112.45. A sudden reversal that takes the price below 111.20, on the other hand, would lean the scale towards the downside for the rest of the day."
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.
Recommended content
Editors’ Picks
EUR/USD clings to gains near 1.0700, awaits key US data
EUR/USD clings to gains near the 1.0700 level in early Europe on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
USD/JPY keeps pushing higher, eyes 156.00 ahead of US GDP data
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, recapturing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming intervention risks. The focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold closes below key $2,318 support, US GDP holds the key
Gold price is breathing a sigh of relief early Thursday after testing offers near $2,315 once again. Broad risk-aversion seems to be helping Gold find a floor, as traders refrain from placing any fresh directional bets on the bright metal ahead of the preliminary reading of the US first-quarter GDP due later on Thursday.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price.
Meta takes a guidance slide amidst the battle between yields and earnings
Meta's disappointing outlook cast doubt on whether the market's enthusiasm for artificial intelligence. Investors now brace for significant macroeconomic challenges ahead, particularly with the release of first-quarter GDP data.