- USD / JPY remains quiet above 109.00 despite renewed USD strength.
- Risk aversion helps the JPY find demand early in the US session.
- US real GDP expanded 4.3% in the fourth quarter.
The USD/JPY gained bullish momentum during the first half of the day and advanced to a daily high of 109.17. However, the pair appears to be struggling to rise early in the US session and was last seen gaining 0.3% on the day at 109.05.
USD / JPY moves sideways as market mood turns sour
Risk aversion, as reflected in the steep losses seen in major European stock indices and US stock index futures, is helping the yen find demand and remain resilient against its main rivals.
On the other hand, the US dollar index rose to its highest level in four months at 92.75 after the release of optimistic US data and allowed the USD / JPY to remain in positive territory.
The US Bureau of Economic Analysis reported that real GDP grew at an annual rate of 4.3% in the fourth quarter. This reading was higher than the market expectation and the previous estimate of 4.1%. Additionally, the weekly report released by the US Department of Labor revealed that initial jobless claims dropped to 684,000, the lowest reading since the pandemic began.
There will be no further macroeconomic data releases on the US economic agenda for the rest of the day, but New York Federal Reserve Chairman John Williams and Federal Reserve Vice Chairman Richard Clarida will deliver speeches.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
