USD/JPY trades at fresh multi-week highs near 104.30 ahead of US data
- USD/JPY continues to edge higher after posting strong gains on Wednesday.
- US Dollar Index is consolidating weekly gains near 90.70.
- US BEA will release its advanced estimate for Q4 GDP.
The USD/JPY pair gained more than 40 pips on Wednesday and preserves its bullish momentum ahead of key data releases from the US. As of writing, the pair was trading at 104.30, a little below the 17-day high it set at 104.38, rising 0.2% on a daily basis.
DXY turns quiet below 91.00
The US Federal Reserve left its policy rate unchanged as expected on Wednesday. Although FOMC Chairman Powell refrained from delivering any surprising comments on the policy outlook or asset purchases, the greenback continued to outperform its rivals boosted by safe-haven flows. The US Dollar Index (DXY) rose all the way up to 90.88 but seems to have gone into a consolidation phase before the American session. At the moment, the DXY is virtually unchanged on the day at 90.68.
Later in the day, the US Bureau of Economic Analysis will release its advanced estimate for the fourth-quarter GDP growth, which is expected to show an expansion of 3.9% in the economic activity. A disappointing reading could trigger a selloff in US stocks and help the greenback keep a firm footing in the second half of the day.
Ahead of the opening bell, S&P 500 Futures are down 0.3% and Nasdaq Futures are losing nearly 1%.
Other data releases from the US will include the weekly Initial Jobless Claims, Goods Trade Balance and New Home Sales for December.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
