USD / JPY is trading at new multi-week highs near 104.30 ahead of US data.

• USD / JPY continues to rise after posting strong gains on Wednesday.
• The US Dollar DXY Index is consolidating weekly gains near 90.70.
• The US Bureau of Economic Analysis will release its advanced estimate for fourth-quarter GDP.

The pair USD/JPY gained more than 40 pips on Wednesday and retains its bullish momentum ahead of key US data release At the time of writing, the pair it is trading at 104.30, slightly below the 17-day high it has set at 104.38 earlier in the day.

The DXY index remains stable just below 91.00

The United States Federal Reserve left its monetary policy rate unchanged as expected on Wednesday. Although the president of the FOMC, Jerome Powell refrained from making surprising comments On the prospects for monetary policy or asset purchases, the US dollar continued to outperform other currencies, driven by safe-haven monetary flows. The DXY US Dollar Index rose to 90.88 but appears to have entered a consolidation phase ahead of the US session. At the moment, the DXY index is virtually unchanged on the day at 90.68.

Later in the day, the US Bureau of Economic Analysis to Release Advanced Estimate for Fourth Quarter GDP Growth, which is expected to show a 3.9% expansion in economic activity. A disappointing reading could trigger a selloff in the US stock markets and help the USD hold its ground in the second half of the day.

Ahead of the opening bell, S&P 500 futures are down 0.3% and Nasdaq futures are down nearly 1%.

Other US data releases include weekly initial jobless claims, the goods trade balance, and December new home sales.

USD / JPY technical levels