FxWirePro: USD/JPY extends retreat from 2-week highs, strong US GDP does little to boost dollar

USD/JPY chart - Trading View 

USD/JPY was trading 0.09% lower on the day at 108.83 at around 05:30 GMT, outlook is neutral. The major is slipping lower from 2-week highs of 109.22 hit on Thursday's trade.

Upbeat US GDP data released overnight failed to provide any support to the greenback. Risk-off mood amid worsening virus conditions in Japan put a bid under the safe-haven Japanese yen.

The data published by the US Bureau of Economic Analysis on Thursday showed that the US economy grew by 6.4% (first estimate) in Q1, beating analysts' estimate at 6.1%.

Earlier on Friday, Tokyo Consumer Price Index (CPI) fell below -0.2% forecast and previous readouts to -0.6% in April whereas Tokyo core CPI arrived at 0.0% versus 0.3% expected and prior. 

Jibun Bank Manufacturing PMI for April grew past 53.3 market consensus and earlier prints to 53.6. Unemployment Rate and Industrial Production readings for March also printed positive numbers.

Technical bias for the pair remains neutral. Upside finds stiff resistance at 200W MA at 108.92. Decisive break above required for upside continuation.

On the flipside, the pair is holding support at 21-EMA at 108.69. Break below could see dip till 55-EMA at 108.06.