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USD/JPY tumbles on downtrodden Japanese GDP, will 96.00 hold?

FXstreet.com (New York) - The USD/JPY foreign exchange rate fell lower at the Tokyo open Monday, having recently learned of weak Japanese economic data.

In Japan, the Gross Domestic Product Annualized (Q2) came in at +2.6%, missing estimates of +3.6%. Moreover, Gross Domestic Product (QoQ) was reported at +0.6% in Q2, compared with projections +0.9%.

At this juncture, the USD/JPY is now navigating the region of 96.00, now incurring a fall of -0.24% off its opening. Briefing the technicals, the USD/JPY will face support at 96.09 (June 12 high), a break of which will open 95.86 (August 8 low).

USD/JPY strategic bias

According to Jim Langlands at FX Charts, “The USD/JPY 4-hour charts are a little oversold and pointing a little higher, so we could yet see a bit of a rally, and there is a fair bit of data out of Tokyo on Monday to get the ball rolling, which will be followed on Tuesday by the BOJ minutes. Any decent strength toward the mid 97 level though, will, I suspect, be a selling opportunity for the medium term move lower and I would be quite surprised to see 98.00 again in the next few days.”

Gold gaps higher, but still range-bound with 1,343 as the ST ceiling

While still in between support and resistance, gold has gapped up to start the week. Technicians are eyeing 1,343 as a potential stopping point for the rally.
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EUR/JPY posts fresh 1-month lows sub-128 on worse than expected Japan GDP

The EUR/JPY foreign exchange cross rate is currently trading at 128.14, off recent session and fresh 1-month lows at 127.94 following worse than expected Japan GDP coming out at +2.6% y/y when consensus pointed for a +3.6% increase.
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