Japanese Yen Gains Against the USD Post GDP Release
Aayush Jindal
Key Highlights
Japanese yen managed to gain some ground against the US dollar after a couple of important releases in Japan.
Japanese Gross Domestic Product released by the Cabinet Office registered an increase of 0.6% in the fourth quarter of 2014.
Japanese Industrial Production was also released by the Ministry of Economy, Trade and Industry, which came in at +0.8%, compared to the forecast of a 0.5% decline.
Technical AnalysisThe USDJPY pair moved lower and traded towards the 118.30-40 support area. The most important point is that the pair is currently trading around the 200 simple moving average on the 4 hour chart, which is acting as a hurdle for the pair. Moreover, the 100 SMA (4H) is also sitting around the same area. So, there is a monster support around the 118.40 level for the USDJPY pair.On the upside, an immediate resistance is around the 118.80 level. A break above the same might take the USDJPY pair towards the next hurdle around 119.00. The 4H RSI is below the 50 mark, which can be considered as a bearish sign in the near term.Japanese GDPEarlier during the Asian session, the Japanese Gross Domestic Product was released by the Cabinet Office. The forecast was slated for an increase of 0.9% in the fourth quarter of 2014, compared to the preceding quarter in which it declined by 0.5%. However, the outcome was a touch lower, as the Japanese GDP grew only by 0.6%. The last reading was also revised from -0.5% to -0.6%.In terms of the annualized reading there was some relief, as the Japanese Gross Domestic Product managed to register a gain of 2.2%. This ignited a minor downside reaction in the USDJPY pair, as it was seen heading towards the 118.20 support area.Japanese Industrial ProductionMoreover, there was one more important release lined up in Japan, as the Industrial Production was published by the Ministry of Economy, Trade and Industry. The market was expecting a better gain in the industrial production in December 2014, compared to the preceding month.The outcome was positive, as the Industrial Production rose by 0.8% in December 2014. In terms of the yearly change, the production gained by 1.0%, compared to December 2013. Overall, the outcome was a touch better than what the Forex market was expecting.
On the upside, an immediate resistance is around the 118.80 level. A break above the same might take the USDJPY pair towards the next hurdle around 119.00. The 4H RSI is below the 50 mark, which can be considered as a bearish sign in the near term.Japanese GDPEarlier during the Asian session, the Japanese Gross Domestic Product was released by the Cabinet Office. The forecast was slated for an increase of 0.9% in the fourth quarter of 2014, compared to the preceding quarter in which it declined by 0.5%. However, the outcome was a touch lower, as the Japanese GDP grew only by 0.6%. The last reading was also revised from -0.5% to -0.6%.In terms of the annualized reading there was some relief, as the Japanese Gross Domestic Product managed to register a gain of 2.2%. This ignited a minor downside reaction in the USDJPY pair, as it was seen heading towards the 118.20 support area.Japanese Industrial ProductionMoreover, there was one more important release lined up in Japan, as the Industrial Production was published by the Ministry of Economy, Trade and Industry. The market was expecting a better gain in the industrial production in December 2014, compared to the preceding month.The outcome was positive, as the Industrial Production rose by 0.8% in December 2014. In terms of the yearly change, the production gained by 1.0%, compared to December 2013. Overall, the outcome was a touch better than what the Forex market was expecting.
On the upside, an immediate resistance is around the 118.80 level. A break above the same might take the USDJPY pair towards the next hurdle around 119.00. The 4H RSI is below the 50 mark, which can be considered as a bearish sign in the near term.Japanese GDPEarlier during the Asian session, the Japanese Gross Domestic Product was released by the Cabinet Office. The forecast was slated for an increase of 0.9% in the fourth quarter of 2014, compared to the preceding quarter in which it declined by 0.5%. However, the outcome was a touch lower, as the Japanese GDP grew only by 0.6%. The last reading was also revised from -0.5% to -0.6%.In terms of the annualized reading there was some relief, as the Japanese Gross Domestic Product managed to register a gain of 2.2%. This ignited a minor downside reaction in the USDJPY pair, as it was seen heading towards the 118.20 support area.Japanese Industrial ProductionMoreover, there was one more important release lined up in Japan, as the Industrial Production was published by the Ministry of Economy, Trade and Industry. The market was expecting a better gain in the industrial production in December 2014, compared to the preceding month.The outcome was positive, as the Industrial Production rose by 0.8% in December 2014. In terms of the yearly change, the production gained by 1.0%, compared to December 2013. Overall, the outcome was a touch better than what the Forex market was expecting.