FxWirePro: USD/JPY Rebounds from Session Lows at 108.72, Retakes the 109 Handle
- USD/JPY rebounds from session lows in response to better-than-expected Japanese GDP data for the first quarter of 2016.
- Data released earlier today showed that Japan's preliminary real Q1 2016 GDP came at 0.4% q/q vs 0.1% expected, with the Q1 annualised GDP at +1.7 pct vs +0.2% expected.
- Upbeat data saw a surge in the Nikkei 225, currently up 0.42% after an early sell-off.
- In light of the recent growth figures in the Eurozone, improving economic indicators in the US, and now better Japanese GDP, hopes of further BOJ easing have diminished.
- This Green shoots in the global growth environment are bullish for stocks, which may in turn add pressure to the Japanese Yen.
- Technically, on the daily charts, we have see a Doji formation in the Asian session. The pair is seen supported above 10-DMA at 108.52.
- Technical indicators are near term bullish, upside in the pair. Stochs, RSI and MACD point north. Break above 109.90 could see test of 50-DMA at 110.25.
- We had advised a long in our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-holds-above-5-DMA-stay-long-209028). We recommend holding for upside.