TALKING POINTS: USD/JPY, 4Q PRELIMINARY GDP, CPI, TRADE TALKS, BREXIT
Japanese Yen pared slight features in response to blended 4Q preliminary GDP knowledge
USD/JPY nearing resistance ranges at 110.995-111.564, features might proceed
Japanese CPI, US-China commerce talks, and Brexit developments in focus
The Japanese Yen cautiously gained towards the US Greenback as native financial knowledge crossed the wires early into Thursday’s Asia Pacific buying and selling session. Preliminary annualized GDP for the fourth quarter got here in at 1.four%, consistent with the estimate and up from -2.6%. In the meantime the preliminary seasonally adjusted progress determine for 4Q was Zero.three%, a decline from the forecast of Zero.four% however an enchancment from the -Zero.6% prior. Nonetheless, regardless of the principally in-line knowledge, the foreign money pair quickly pared its losses.
USD/JPY 5-Minute Chart
Regardless of the preliminary slight downtick in costs, the foreign money pair has rallied for almost all of this yr and is presently testing resistance ranges within the 110.995-111.564 vary. Merchants might search for affirmation through each day closing above this vary, which can verify constructive RSI divergence. Nonetheless, a break under the ascending January 2019 pattern line might point out additional bearish momentum.
USD/JPY Every day Chart
Trying forward, the foreign money pair will likely be carefully eyeing the discharge of December’s month-on-month US retail gross sales, along with preliminary College of Michigan client sentiment for February. January’s Japanese CPI knowledge might also provide subsequent cues. Moreover, equities’ response to basic themes will proceed to dominate subsequent strikes, as US-China commerce talks resume as we speak and UK Prime Minister Theresa Could continues to battle to dealer a Brexit deal.
USD/JPY Buying and selling Sources
— Written by Megha Torpunuri, DailyFX Analysis Crew