USD/JPY Current price: 108.47

  • Japanese Q3 Gross Domestic Product doubled the market’s expectations, up by 0.4%.
  • The US calendar has nothing to offer today, attention focus on Washington-Beijing relationship.
  • USD/JPY pressuring the post-NFP low, decline to accelerate once below 108.40.

The USD/JPY pair is under selling pressure this Monday, as a positive surprise from employment figures can’t overshadow poor growth figures and persistent tensions between Washington and Beijing. Late Friday, US President Trump jump into twitter, calling for the World Bank to stop lending to China.

Japanese data released overnight beat the market’s expectations, as the economy grew by 0.4% in the three months to September, doubling the market’s forecast of 0.2%. The annualized GDP jumped to 1.8% from 0.2%, while the Eco Watchers Survey for November printed 39.4, up from 36.7 in the previous month.  The US won’t release macroeconomic data during the upcoming American session.

USD/JPY short-term technical outlook

The USD/JPY pair is technically bearish, trading below all of its moving averages in the 4-hour chart, with the 20 SMA below the larger ones, although without a clear directional strength. Technical indicators in the mentioned chart hold within negative levels but also lack a certain direction. The risk is anyway skewed to the downside, with the immediate support being 108.39, the post-NFP low achieved last Friday. Sellers will remain in control as long as the pair remains below the 109.00 level.

Support levels: 108.40 108.10 107.75

Resistance levels: 108.70 109.00 109.30  

View Live Chart for the USD/JPY

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