USD/JPY chart - Trading View
USD/JPY attempted a minor recovery to session highs at 106.65 after Japan’s Preliminary GDP showed record contraction in Q2.
Japan’s Q2 Preliminary GDP drops below -7.6% forecast to -7.8% QoQ, the biggest contraction since data became available in 1980.
The major however quickly faded the uptick as mixed Asian equities and the renewed US dollar weakness drags the spot lower.
The JPY was also underpinned by the Tertiary Industry Index data which recovered to 7.9% in June from -2.9% in the previous month.
The pair trades with a bearish bias. Recovery attempts capped at 50-DMA. 'Dragonfly Doji' on 13th August trade and retrace below 5-DMA keep bias bearish.
The pair trades in a downward slopping channel and resumption of downside will see dip till 20-DMA at 106.04. Further weakness eyes 104.18 (July 31st low).
