USD/JPY Attempts Tepid Bounce Above 108, Awaits US GDP
The bears appear to face exhaustion after the relentless slide seen in the USD/JPY so far this Thursday, with markets now focussed on the US advance GDP numbers for next direction.
USD/JPY bonces-off a dip below 108
The dollar-yen pair is seen licking wound after the heavy sell-off witnessed on BOJ’s status quo. The major reversed entire last week’s recovery from near one and a half year lows and now consolidates the downside ahead of the upcoming crucial US macro release. At the moment, the major hovers around 108.25, recovering slightly from 107.93 fresh weekly lows, still down -2.85% on the day.
In the meantime, markets continue to digest the recent central banks’ decisions, with the BOJ surprising markets with a slight hawkish tone. Ahead of the US open, we will have the first estimate of the US Q1 2016 GDP release, which is expected to rise 0.6%, following an expansion of 1.4% in Q4 2015.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 110 (round number). A break above the last, the major could test 110.41/50 (daily S2/ psychological levels). While to the downside, the immediate support is seen at 107.93 (Daily Low) and below that at 107.65 (Monthly Low).