USD/JPY Moves Off Daily Lows, Back Above 108.50
The yen lost momentum during the last hours as stocks in the US recover ground and following US GDP data. USD/JPY dropped to test daily lows but bounced to the upside, breaking above 108.45/50 (European session highs).
The pair recently reached 108.70 and it has risen 80 pips from the lows. Despite the recent recovery still trades sharply lower for the day, almost 300 pips below the level it closed on Wednesday. The decision of the Bank of Japan to keep rates unchanged boosted the yen in the market, the Japanese currency is having the best performance in months.
In the US, GDP slowed to 0.5% in the first quarter according to the first estimate, missing expectations of 0.7% grow. Greenback rose modestly after the report trimming losses across the board.
USD/JPY holding above 2016 lows
The sharp decline of the USD/JPY pair stopped slightly above 2016 lows, that were reached two weeks ago at 107.60. The bounce from the lows so far appears as a normal correction and it continues to be under pressure, holding a bearish tone. A break below 107.60 would put the price at the lowest since October 2014 and could open the doors for a more important decline.