25 Jun 2014
USD/JPY slumps after awful US GDP
FXStreet (Córdoba) - The dollar tumbled to fresh 2-week lows versus the yen after data showed the US economy contracted more than initially estimated in Q1 2014.
The US GDP was revised to -2.9% versus -1.0 previously calculated, marking the biggest decline in 5 years. May durable goods orders also slumped by 1.0% versus a flat reading forecasted by analyst. Even though economists expect output to bounce in Q2, this is a big setback for the US recovery and might prompt the Fed to adopt a more cautious stance.
The USD was crushed across the board, falling toward its lowest in 12 days against the yen at 101.67 in the knee-jerk reaction. At time of writing, USD/JPY is trading at 101.70, 0.25% below its opening price.
USD/JPY technical levels
In terms of technical levels, the pair could find immediate supports at 101.60 (200-day SMA) and 101.42 (May 29 low) and 101.09 (May 19 low). On the flip side, resistances are seen at 102.20 (100-day SMA), 102.32 (Jun 18 high) and 102.56 (Jun 10 high).
The US GDP was revised to -2.9% versus -1.0 previously calculated, marking the biggest decline in 5 years. May durable goods orders also slumped by 1.0% versus a flat reading forecasted by analyst. Even though economists expect output to bounce in Q2, this is a big setback for the US recovery and might prompt the Fed to adopt a more cautious stance.
The USD was crushed across the board, falling toward its lowest in 12 days against the yen at 101.67 in the knee-jerk reaction. At time of writing, USD/JPY is trading at 101.70, 0.25% below its opening price.
USD/JPY technical levels
In terms of technical levels, the pair could find immediate supports at 101.60 (200-day SMA) and 101.42 (May 29 low) and 101.09 (May 19 low). On the flip side, resistances are seen at 102.20 (100-day SMA), 102.32 (Jun 18 high) and 102.56 (Jun 10 high).