USD/JPY: Japan’s 4Q GDP falls more than initially estimated


USDJPY Movement

For the 24 hours to 23:00 GMT, the USD declined 4.48% against the JPY and closed at 105.21 on Friday.

In the Asian session, at GMT0400, the pair is trading at 102.45, with the USD trading 2.62% lower against the JPY from Friday’s close.

Overnight data indicated Japan’s annualised gross domestic product (GDP) declined 7.1% on a quarterly basis in the fourth quarter of 2019, thereby raising recession fears. The preliminary figures had indicated a drop of 6.3%. Additionally, the nation’s trade deficit (BOP basis) stood at ¥985.1 billion in January, compared to a surplus of ¥120.7 billion in the earlier month.

The pair is expected to find support at 100.66, and a fall through could take it to the next support level of 98.87. The pair is expected to find its first resistance at 105.15, and a rise through could take it to the next resistance level of 107.85.

Amid a lack of macroeconomic releases in Japan today, investor sentiment would be determined by global macroeconomic factors.

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

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