The U.S. Dollar (USD) inched higher against the Japanese Yen (JPY) on Thursday, increasing the price of the pair to more than 104.00, ahead of the release of Japan’s Gross Domestic Product (GDP) news.
Technical Analysis
As of this writing, the USDJPY consolidates around 104.63. The price of the pair might face some resistance near the listed price tags.
Resistance
104.76 – the major horizontal resistance
105.26 – the high of February 09, 2021
105.74 – the upper trendline arm
On the downside, the USDJPY pair might find some sustainability near the given below support levels.
Support
104.32 – the confluence of key horizontal support and trendlines
103.93 – the 38.2% fib level support
103.00 – the psychological number
Japan Gross Domestic Product (GDP) News
The Cabinet Office, Japan is scheduled to release numbers for the Gross Domestic Product (GDP) on Sunday (February 14, 2021). As per economists’ consensus, the GDP registered a reading of 2.3% in the fourth quarter (Q4)of 2020, as compared to the reading of 5.3%, in the quarter (Q3) before.
The stats for the GDP shows the monetary worth of the services, goods, and structures produced in the country within a given period. The GDP provides a macro overview of the market activity, indicating the economic pace at which the country progresses or lack behind. Generally speaking, a high reading suggests a bearish market for the USDJPY ahead, and vice versa.
Conclusion
Given the macro-economic outlook of the pair over the recent days, selling the pair around current levels might be a sensible trading decision in the short-to-medium term.