FxWirePro: USD/JPY holds 50-DMA support, focus on Q2 GDP data for further impetus

• Weak macro data overnight taking its toll on the greenback, USD/JPY trades 0.24% lower on the day.
   
• Data released on Thursday showed that US durable goods orders that rose by 1.0% in June, well short of the market consensus for a 3.0% advance.
   
• Further Jobless claims rose to 217k slightly above expectations at 215k.
   
• Despite disappointments in data, resurgent US Treasury bond yields kept the dollar supported.
   
• USD/JPY edged higher from session lows at 110.59 to close above the 111 handle at 111.22.
   
• Downside held support at 50-DMA at 110.56 and we see weakness only on break below.
   
• Upside on the day remains capped at 21-EMA at 111.31, break above could see further upside.
   
• Focus on US Q2 GDP data, expectations are for Q2-2018 GDP to show meaningful acceleration in real activity.
   
• Spike in real activity could steepen the Fed rate hike path thereby boosting the US dollar.

Support levels - 110.56 (50-DMA), 110.08 (200-DMA), 109.91 (38.2% Fib)

Resistance levels - 111, 111.14 (5-DMA), 111.31 (21-EMA)

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 60.1309 (Neutral), while Hourly JPY Spot Index was at 81.5074 (Neutral) at 0400 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.