USD/JPY Threatens Key Support As Japan’s GDP Report Looms


USD/JPY once again found a support around the long term trendline support on Friday and consolidated around the key support area ahead of Japan’s GDP report which is due next week. The trend remains bearish due to Lower High (LH) in the recent upward wave.

Technical Analysis

As of this writing, the pair is being traded near 101.78. A support can be seen around 101.55 that is the lower trendline of the triangle as demonstrated in the following chart. A break and daily closing below the trendline shall stir renewed selling interest, opening doors for a dip below the 100.00 milestone.


On the upside, the pair is likely to face a hurdle near 102.00 that is the 38.2% fib level and psychological number ahead of the channel resistance which is currently sitting in around 102.74, a daily closing above the channel resistance will turn the sentiment to bullish, validating a rally towards the 103.30 resistance area.

First Quarter Growth

On Wednesday, the Cabinet Office of Japan will release the first quarter Gross Domestic Product (GDP) report. According to the median projection of various economists, the Japanese economy grew at 4.5% during the first quarter compared with 0.7% in the same quarter of the year before. Similarly, the economy grew at 1.12% in the first quarter as compared to 0.2% in the quarter before, the forecast added. Better than expected actual figures will be considered bearish for USD/JPY and vice versa

Trade Ideas

Considering the overall macro-economic scenario and technical outlook, selling the pair on a daily closing below the trendline could yield favorable results, the trade should however be closed down on a daily closing back above the trendline; the target may be around 100.00.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Market Analysis: US Dollar On the Rise Despite Weak PMI Data Market Analysis: GBP/USD Nosedives While USD/CAD Aims Higher EUR/USD Analysis: Key Support Zone Resists Selling Pressure USD/JPY Analysis: Rate Reaches Maximum of the Year Market Analysis: EUR/USD, GBP/USD, and USD/JPY

Latest articles

Forex Analysis

Market Analysis: US Dollar On the Rise Despite Weak PMI Data

EUR/USDThe euro fell against the US dollar on Friday as economic data showed a contraction in economic activity, which could prompt European Central Bank hawks to soften their policy stance. Preliminary data indicates a contraction in economic activity in

Financial Market News

Economic calendar: NASDAQ 100 May Keep Falling, High Volatility in Oil Markets, Potential Appreciation of the US Dollar

The US, Japan and the UK may have kept interest rates on hold last week, but with the Federal Reserve indicating that rates will stay higher for longer, there is turmoil in the equity markets. The NASDAQ 100 fell 500

Financial Market News

Financial Markets Waking Up after a Turbulent Week: Important News

The main event of last week was information from the Fed. Jerome Powell once again demonstrated his determination to maintain a tough political stance, which caused: → increase in bond yields. Yields on 10-year securities reached their highest since 2009; → the

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.