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20 May 2015
USD/JPY less committed bulls thinking again on Japan's GDP
FXStreet (Guatemala) - USD/JPY has dipped on the back of the GDP release and trades at 120.68 with a high of 120.71 and a low of 120.57 in to the Tokyo open.
USD/JPY had been performing with a decisive bid today on the back of the one way action overnight in the greenback over divergences between the Fed and ECB with a poignant speech for the euro hitting the market that came from ECB's council member Benoit Coeure, when he pre-told a London group of bankers and hedge-fund managers that the Central Bank will front load its asset-buying program before a summer lull. The euro collapsed by 1.5% and the greenback rallied across the board taking the Yen through key resistance levels on the 120 handle before stalling.
Back to Japan, the GDP data has given the Yen a lift and gives reason for the less committed bulls to hesitate at these loft levels in the major. The data came as 3.4% vs 3.6% consensus for y/y Q1 and up vs previous at 2.4%. The annualised read 2.4% vs 1.5% consensus and previous while Q/Q read as 0.6% vs 0.4% for both consensus and previous.
Technically, 120.00/40, 119.00/42 and the 118.80 level come as supports before 118.30, 117.80 and the well defined 116 level. Major resistance comes as 121.95/00 on a break out of 120.70.
USD/JPY had been performing with a decisive bid today on the back of the one way action overnight in the greenback over divergences between the Fed and ECB with a poignant speech for the euro hitting the market that came from ECB's council member Benoit Coeure, when he pre-told a London group of bankers and hedge-fund managers that the Central Bank will front load its asset-buying program before a summer lull. The euro collapsed by 1.5% and the greenback rallied across the board taking the Yen through key resistance levels on the 120 handle before stalling.
Back to Japan, the GDP data has given the Yen a lift and gives reason for the less committed bulls to hesitate at these loft levels in the major. The data came as 3.4% vs 3.6% consensus for y/y Q1 and up vs previous at 2.4%. The annualised read 2.4% vs 1.5% consensus and previous while Q/Q read as 0.6% vs 0.4% for both consensus and previous.
Technically, 120.00/40, 119.00/42 and the 118.80 level come as supports before 118.30, 117.80 and the well defined 116 level. Major resistance comes as 121.95/00 on a break out of 120.70.