“¢ US Q3 GDP growth stood at 3.5% as compared to 4.2% previous and 3.3% expected.
“¢ A goodish pickup in the USD demand/modest rebound in equities remain supportive.
The USD/JPY pair built on its steady climb from closer to Thursday’s weekly lows and was seen extending the momentum further beyond the 112.00 handle post-US GDP print.
According to the advance (first) estimate, the US economic growth stood at 3.5% annualized pace during the third quarter of 2018. The reading marked moderation from last quarter’s strong growth of 4.2% but was still better than 3.3% anticipated and thus, provided a minor lift to the already stronger US Dollar.
Apart from a goodish pickup in the USD demand, traders also seemed to track easing bearish pressure around equity markets, which weighed on the Japanese Yen’s safe-haven status and remained supportive of the pair’s goodish rebound of around 30-pips from an intraday low level of 111.86.
It, however, remains to be seen if the pair is able to continue with the recovery momentum or the uptick is again sold into amid the prevalent risk-off mood on the back of lingering concerns of a global economic slowdown.
Technical levels to watch
Immediate resistance is now pegged near the 112.40-45 region, above which the pair is likely to test the 112.80-85 supply zone before eventually darting to reclaim the 113.00 handle. On the flip side, the 111.85-80 area now seems to have emerged as an immediate support, which if broken is likely to accelerate the fall towards 100-day SMA support near the 111.55 region.
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