USD/JPY refreshes session tops post-US GDP, looking to build on momentum beyond 111.00 handle

   “¢   US Q4 GDP growth stood at 2.6% annualized pace as against 2.3% expected.
   “¢   The data provided a goodish lift to the USD, though cautious mood capped gains.

The USD/JPY pair managed to recover early lost ground and spiked to session tops, with bulls now looking to build on the momentum beyond the 111.00 handle.

Having consolidated in a range through the mid-European session, the pair caught some bids in the last hour after the advance US GDP print came in to show that economic growth stood at 2.6% annualized pace during the fourth quarter of 2018.  

Despite a deceleration from the previous quarter’s solid growth of 3.4%, the reading was still better than consensus estimates pointing to a 2.3% growth rate and provided a goodish lift to the US Dollar, albeit weaker US Treasury bond yields kept a lid on any meaningful up-move.

Hence, it would be prudent to wait for a strong follow-through buying beyond the 111.00 handle before traders start positioning for any further appreciating move, beyond YTD tops, towards challenging 50-day SMA barrier near mid-111.00s.

Technical levels to watch