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…
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.
