US Preliminary Gross Domestic Product (GDP) measures production and growth of the economy. Analysts consider GDP one the most important indicators of economic activity. A reading which is better than the market forecast is bullish for the dollar. Here are all the details, and 5 possible outcomes for USD/JPY. Published on Wednesday at 12:30 GMT. Indicator Background US Preliminary GDP is a key economic indicator, and provides an excellent indication of the health and direction of the US economy. Traders should pay particular attention to this economic indicator, as any unexpected reading could change the direction of USD/JPY. The indicator slumped in Q1, dropping to 1.9%. The markets are expecting a further decline in Q2, with an estimate of 1.7%. Will the indicator surprise the markets with a better release than forecast? Sentiments and levels The yen benefited from the Fed’s dovish meeting minutes. However, these hopes are slowly fading out. A disappointment from Ben Bernanke in Jackson Hole could push USD/JPY back up. Traders should keep in mind that US is still looking better than Japan in terms of growth, and that Japan’s legendary trade surpluses are a thing of the past. So, the overall sentiment is neutral on USD/JPY towards this release. Technical levels, from top to bottom: 79.70, 79.10, 78.80, 78, 77.50, and 77. 5 Scenarios Within expectations: 1.4% to 2.0%. In such a scenario, USD/JPY is likely to rise within range, with a small chance of breaking higher. Above expectations: 2.0% to 2.3%: An unexpected higher reading can push the pair above one resistance line. Well above expectations: Above 2.3%: An unexpected surge in the reading would help the yen, and a second line of resistance might be broken as a result. Below expectations: 1.0% to 1.3%: A lower GDP figure than predicted could cause the pair to climb and fall below one support level. Well below expectations: Below 1.0%. A very weak reading could hurt the dollar, and USD/JPY could break a second level of support. For more on the yen, see the USD/JPY forecast. Kenny Fisher Kenny Fisher Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer. Kenny's Google Profile View All Post By Kenny Fisher Opinions share Read Next Catalonia’s Aid Request Could Speed Spanish One, ECB Blitz Yohay Elam 9 years US Preliminary Gross Domestic Product (GDP) measures production and growth of the economy. Analysts consider GDP one the most important indicators of economic activity. A reading which is better than the market forecast is bullish for the dollar. Here are all the details, and 5 possible outcomes for USD/JPY. Published on Wednesday at 12:30 GMT. Indicator Background US Preliminary GDP is a key economic indicator, and provides an excellent indication of the health and direction of the US economy. Traders should pay particular attention to this economic indicator, as any unexpected reading could change the direction of USD/JPY. The indicator… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
