Wednesday, 18 May 2016

USD/JPY uplifted


Japan's GDP figures were released earlier this morning. During the first quarter GDP registered 0.4% against the forecasted 0.1%. On annual basis the growth is 0.7% compared to expected 0.3%.
Japan runs the risk of slipping into technical recession, which will lead to eased monetary policy. This will be of support to USD/JPY, as will weaken the yen.Now upon these better figures the hopes for BoJ’s further stimulus are fading away. 
On Tuesday session US dollar went up to 109.65, which was its highest level since April 28, supported by the CPI positive mood.
On today’s session the pair rebounded from lows at 108.72 and currently is trading at 109.53. Short term sentiment remains bullish, as next bulls challenge is 109.90.

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