USD/JPY: 109.50 is key ahead of China's GDP

While there was little activity surrounding USD/JPY in the U.S shift, the undertone remains better bid for the major on fresh attempts to the upside on the 109 handle.

The U.S. CPI data gave reason to pause in respect to the timings for a rate hike in the U.S. and triggered a sell-off to 108.89 lows before the yen bears and a turn in took over and enabled a recovery in USD/JPY to 109.30/40 and prevailing spot levels at time of writing. The forthcoming Asian session might not be the usual quiet lead into the weekend as we have the Chinese GDP data, and should there be a positive outcome, coupled with this week's surplus in the trade balance, risk appetite could favour further upside in USD/JPY.

USD/JPY levels

USD/JPY needs to get through this static resistance at 109.50/60 for a pop at 5th April 109.94. Failures here warrant a period of consolidation and risks then look back towards the key 106.63/38.2% level and retracement of the move up from 2012. Below there, the 200 month ma at 105.84 is in focus.