FxWirePro: USD/JPY slumps to 6-week low, dismal US GDP data stokes recession fears

Chart - Courtesy Trading View 

Spot Analysis:

USD/JPY was trading 1.14% lower on the day at 132.71 at around 07:40 GMT

Previous Week's High/ Low: 138.87135.56

Previous Session's High/ Low: 136.57/ 134.19

Fundamental Overview:

The US dollar index (DXY) printed a fresh three-week low of 105.84 and is likely to display more weakness after poor US GDP data renewed recession fears.

US Bureau of Economic Analysis reported on Thursday, US annual Gross Domestic Product (GDP) at -0.9%, missing expectations of 0.5%. 

Focus today will be on US Personal Consumption Expenditure (PCE) data, which is seen at 6.7%, higher than the prior print of 6.3%.

Technical Analysis:

- USD/JPY slips lower for the 3rd straight session, hits 6-week low

- Price action has broken below 55-EMA support and is on track for further downside

- Daily cloud is immediate support at 132.82, break below will plummet prices

- Momentum is strongly bearish and volatility is high and rising

Major Support and Resistance Levels:

Support - 132.82 (Cloud top), 130.87 (Cloud base), 129.51 (110-EMA)

Resistance - 133.76 (55-EMA), 135.41 (5-DMA), 136.05 (21-EMA)

Summary: USD/JPY sell-off to continue as price breaks into daily cloud. 110-EMA at 129.51 insight.