16 Feb 2015
USD/JPY short-term outlook uncertain, medium-term bullish – GrowthAces
FXStreet (Barcelona) - The Growth Aces Research Team reviews today’s Japanese GDP data release, and further shares the key technical levels for USD/JPY.
Key Quotes
“Japan's economy rebounded from recession in the final quarter of last year but growth was weaker than expected. The annualised 2.2% expansion in October-December was smaller than a 3.7% increase forecast.”
“Private consumption rose 0.3% in the final quarter. Capital expenditure also rose just 0.1% after two straight quarters of declines.”
“Private consumption and capital spending, which had been expected to boost growth in October-December, turned out to be weaker than expected. The data shows negative impact from a sales tax hike last April continued.”
“External demand added 0.2 percentage point to qoq growth on robust shipments to the United States and China, Japan's two biggest export destinations.”
“The USD/JPY did not react significantly to Japan’s GDP data. The rate traded near 200-hma of 118.67. Investors are focused now on Wednesday’s BOJ decision, but we do not expect any additional action from the Japanese monetary authorities.”
“We stay sideways on the USD/JPY now.”
“There are still big challenges ahead of Japan’s economy, while the Fed is getting closer to interest rates hikes. That is why medium-term outlook for the USD/JPY remains bullish. However, short-term outlook is unclear.”
“Significant technical analysis' levels:
Resistance: 119.19 (high Feb 13), 120.46 (high Feb 12), 120.48 (high Feb 11)
Support: 118.20 (hourly low Feb 16), 117.19 (low Feb 6), 117.04 (low Feb 5)”
Key Quotes
“Japan's economy rebounded from recession in the final quarter of last year but growth was weaker than expected. The annualised 2.2% expansion in October-December was smaller than a 3.7% increase forecast.”
“Private consumption rose 0.3% in the final quarter. Capital expenditure also rose just 0.1% after two straight quarters of declines.”
“Private consumption and capital spending, which had been expected to boost growth in October-December, turned out to be weaker than expected. The data shows negative impact from a sales tax hike last April continued.”
“External demand added 0.2 percentage point to qoq growth on robust shipments to the United States and China, Japan's two biggest export destinations.”
“The USD/JPY did not react significantly to Japan’s GDP data. The rate traded near 200-hma of 118.67. Investors are focused now on Wednesday’s BOJ decision, but we do not expect any additional action from the Japanese monetary authorities.”
“We stay sideways on the USD/JPY now.”
“There are still big challenges ahead of Japan’s economy, while the Fed is getting closer to interest rates hikes. That is why medium-term outlook for the USD/JPY remains bullish. However, short-term outlook is unclear.”
“Significant technical analysis' levels:
Resistance: 119.19 (high Feb 13), 120.46 (high Feb 12), 120.48 (high Feb 11)
Support: 118.20 (hourly low Feb 16), 117.19 (low Feb 6), 117.04 (low Feb 5)”