- USD/JPY recovers and returns to Wednesday’s opening bids after US GDP beat estimates.
- US GDP growth accelerated in the third quarter, and Japan’s retail trade figures on tap.
- The Fed’s speech is pulling markets in multiple directions after the Fed’s Barkin took a hawkish line.
The USD/JPY pair is retreating towards early bids of the day near 147.50, as the US Dollar receives a boost from better-than-expected US Gross Domestic Product (GDP) growth figures and an appearance of hawkish line from Federal Reserve (Fed) officials to balance the Fed’s hawkish speech on Tuesday.
Wednesday will give way to the first markets on Thursday, where Japan will publish its latest retail trade and retail sales figures for October.
US GDP grew more than expected in the third quarter, at 5.2% versus the expected 5.0% quarter-on-quarter, exceeding the previous quarter’s 4.9%.
Adding to the bullish factors for the dollar, Richmond Federal Reserve President Tom Barkin made bullish market statements that took some of the bite out of Tuesday’s dovish comments from Fed policymakers.
The Fed’s Barkin believes inflation will remain more tenacious than markets expect going forward, and Barkin cannot even rule out further rate hikes if price growth continues to weigh on the United States.
The latest retail sales figures in Japan will be released early Thursday. According to Markets forecasts, Japanese Retail Trade for the year to October saw a slight improvement from 5.8% to 5.9%.
Monthly retail trade recorded -0.1% in September, while October retail sales were stable at 5%.
Technical Outlook for USD/JPY
The USD/JPY pair is seeing a slight rebound after falling below 147.00 in the session on Wednesday, but bullish momentum remains limited and it is becoming increasingly difficult to ignore the fact that the US Dollar has fallen almost 3.5% since multi-year highs reached in November, just below the 152.00 area.
The pair has a technical top at the 50-day SMA near the 150.00 area, while long-term bearish momentum would run aground at the 200-day SMA near 142.50.
USD/JPY Daily Chart
USD/JPY technical levels
|Latest price today
|Today Daily Change
|Today’s daily variation
|Today’s daily opening
|Previous daily high
|Previous daily low
|Previous weekly high
|Previous weekly low
|Previous Monthly High
|Previous monthly low
|Daily Fibonacci 38.2
|Fibonacci 61.8% daily
|Daily Pivot Point S1
|Daily Pivot Point S2
|Daily Pivot Point S3
|Daily Pivot Point R1
|Daily Pivot Point R2
|Daily Pivot Point R3
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.