- Upbeat GDP data failed to impress yen bulls, USD/JPY hits session highs of 107.59.
- Data released earlier today showed Japan's Q3 GDP data beat forecasts at 0.5% Q/Q vs 0.2% expected and 0.2% last, while the GDP SA annualized Y/Y was 2.2% vs 0.8% expected and 0.7% last.
- The pair has broken above major 200-DMA resistance at 106.23 and trades with a bullish bias.
- Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-upside-stalls-shy-of-107-handle-struggles-to-hold-gains-above-200-DMA-396949) has achieved all targets.
- Technicals support upside in the pair, RSI remains strong, has approached 70 levels.
- Major support levels - 106.49 (200-DMA), 106.32 (5-DMA), 106, 105.19 (trendline)
- Major resistance levels - 107.60 (trendline), 107.90 (June 7 high), 108, 108.43 (weekly 200-DMA)
- At 0445 GMT FxWirePro's Hourly Currency Strength Index stood as follows: USD: + 83.0285(Slightly Bullish), JPY: -58.5457 (Slightly Bearish)
Recommendation: Book partial profits, raise trailing stops to 106.50, target 107.90/ 108/ 108.40
