30 Jul 2015
USD/JPY poised for third straight day of gains?
FXStreet (Mumbai) - The USD/JPY pair has ticked higher on Thursday, raising prospects for the third consecutive day of gains, although the spot remains at a risk of reversal on disappointing US data.
Focus on US data
The preliminary US Q2 GDP data is likely to show the economy rebounded 2.5% from the 0.2% contraction seen in the Q1, while the jobless claims are expected to print below 300K for yet another time.
The USD has strengthened across the board, except against the GBP in anticipation of an upbeat GDP report. Furthermore, the markets have also read the FOMC statement released yesterday as hawkish. However, the bullish momentum in the pair is at the risk of a weaker-than-expected US data.
USD/JPY Technical Levels
The immediate resistance is located at 124.56 (76.4% of 125.851-120.408), above which the spot could extend its gains to 125.05 (June 2 high). On the other hand, a break below 123.772 (61.8% of 125.851-120.408) could see the pair drop to 123.41 (50-DMA).
Focus on US data
The preliminary US Q2 GDP data is likely to show the economy rebounded 2.5% from the 0.2% contraction seen in the Q1, while the jobless claims are expected to print below 300K for yet another time.
The USD has strengthened across the board, except against the GBP in anticipation of an upbeat GDP report. Furthermore, the markets have also read the FOMC statement released yesterday as hawkish. However, the bullish momentum in the pair is at the risk of a weaker-than-expected US data.
USD/JPY Technical Levels
The immediate resistance is located at 124.56 (76.4% of 125.851-120.408), above which the spot could extend its gains to 125.05 (June 2 high). On the other hand, a break below 123.772 (61.8% of 125.851-120.408) could see the pair drop to 123.41 (50-DMA).