USD/JPY: Japanese economic growth revised up in the last quarter of 2016


USDJPY Movement

For the 24 hours to 23:00 GMT, the USD slightly rose against the JPY and closed at 113.97.

In the Asian session, at GMT0400, the pair is trading at 113.68, with the USD trading 0.25% lower against the JPY from yesterday’s close.

Overnight data indicated that Japan’s final gross domestic product (GDP) was revised up to 0.3% QoQ in 4Q 2016, compared to market anticipations for an advance of 0.4% and following a similar rise in the prior quarter. On the contrary, the nation’s (BOP basis) trade deficit stood at ¥853.4 billion in January, compared to market expectations for the nation to record a deficit of ¥800.2 billion. Meanwhile, the nation had registered a surplus of ¥806.8 billion in the previous month.

Earlier today, the nation’s flash leading economic index rose more than expected to a level of 105.5 in January, compared to investor consensus of a rise to a level of 105.4 and following a reading of 104.8 in the prior month. Also, the nation’s flash coincident index surprisingly climbed to a level of 114.9 in January, defying market expectations of a drop to a level of 114.3 and after recording a reading of 114.8 in the prior month.

The pair is expected to find support at 113.48, and a fall through could take it to the next support level of 113.28. The pair is expected to find its first resistance at 114.01, and a rise through could take it to the next resistance level of 114.34.

Looking ahead, traders would await the release of Japan’s preliminary machine tool orders for February, due to release tomorrow.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

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