USDJPY Flat Despite Japanese Government Downward GDP Revision
USDJPY trades flat today despite the downward revision of GDP growth for 2019 by Japanese government from 1.3% to 0.9%; for FY 2020 real GDP growth estimate stands at 1.2%, while for 2019 consumer inflation estimate stands at 0.7%
USD continues with positive momentum as traders looking for a 25 basis point interest rate cut by Fed on Wednesday. Japan Retail Trade (year over year) came in at 0.5%, beating forecasts of 0.2% in June, Retail Trade s.a (month over month) registered at 0%, below expectations (0.8%) in June and Large Retailers’ Sales registered at -0.5% topping expectations of -0.7% in June.
USDJPY managed to break above the 50 day moving average on Thursday giving the bulls the upper hand for the short term. Immediate support for the pair stands at 108.38 the 50 hour moving average while extra support will be met at 108.09 the 200 hour moving average. On the upside first resistance stands at 108.68 the daily high and then at 108.90 the high from July 10th while a break above can drive prices up to 109. The 108.43 mark is a critical level now, long positions can be opened as long as the pair trades above that figure but stop loss orders must be placed at 108.31 as if the pair breaks below sellers will step in. Bears can initiate a short position if the pair breaks below 108.38, targeting the 108 zone.Don’t miss a beat! Follow us on Twitter.