When is Japanese Q3 final GDP data and how could it affect USD/JPY?

Overview

Japan’s Finance Ministry is up for releasing the final reading of the third quarter (Q3) 2019 Gross Domestic Product (GDP) figures at 23:50 GMT on Monday.

Market consensus suggests a 0.2% figure of the growth signal versus a +0.1% preliminary forecast on a quarterly basis. Further, the yearly format indicates no change in 0.6% figure while GDP annualized may rise to 0.7% from 0.2% earlier.

How could Japan’s preliminary GDP affect USD/JPY?

While recently downbeat prints of Leading Index, Coincident Index and Overall Household Spending signal a soft reading of the growth figure, a strong number could challenge further stimulus from the Japanese Government. It should also be noted that the Prime Minister (PM) Shinzo Abe has already signaled a multi-trillion package to revive the economic growth. Hence, any disappointment from the data could be short-lived as the policymakers are already on the stimulus page. Also supporting the Japanese Yen’s run-up will be the market’s safe-haven demand amid the key week including monetary policy meetings from the central banks of the United States (US) and Europe. Furthermore, the US tariffs on China are scheduled to be active on December 15 and could trigger a broad risk-off, which in turn will be supportive to the Japanese yen (JPY).

Technically, the 50-day Simple Moving Average (SMA) level of 108.55 holds the key to the pair’s drop to November month low near 108.20. On the upside, 109.00 acts as immediate resistance whereas 109.70 and 110.00 will be on the Bull’s radar then after.

Key Notes

USD/JPY set to open in a risk-positive environment, bulls looking for upside correction

USD/JPY Forecast: Sellers around 109.00 continue to cap advances

About the Japanese Q3 final GDP

The Gross Domestic Product released by the Cabinet Office shows the monetary value of all the goods, services and structures produced in Japan within a given period of time. GDP is a gross measure of market activity because it indicates the pace at which the Japanese economy is growing or decreasing. A high reading or a better than expected number is seen as positive for the JPY, while a low reading is negative.