• USD/JPY strengthened on Monday as stronger US dollar offset slightly stronger-than-expected Japan’s Q3 GDP print.
• Japan’s economy contracted by nearly 2% in the three months to September, marking the first decline in six quarters, as falling exports under U.S. tariffs weighed heavily, government data showed Monday..
• GDP shrank 1.8% in July–September, following a revised 2.3% expansion in the previous quarter and beating economists’ expectations for a 2.5% decline.
• The data also showed a quarterly contraction of 0.4%, smaller than the median forecast of 0.6%.
• Economists largely saw this quarter’s GDP data as having only a limited influence on the Bank of Japan’s next rate decision compared with factors like inflation. However, an economist close to Prime Minister Sanae Takaichi placed greater significance on the figures.
• Immediate resistance is located at 154.89(23.6%fib), any close above will push the pair towards 155.33 (Higher BB).
• Support is seen at 154.00(Psychological level) and break below could take the pair towards 153.41 (38.2%fib)
Recommendation: Good to buy around 154.50, with stop loss of 153.60 and target price of 155.00
