16 Feb 2015
USD/JPY settles above 118.50 after stop run
FXStreet (Bali) - USD/JPY is trading around 118.60/65 after an early stop run below 118.30, with the lowest quote printed at 118.11 before dip buyers came in ahead of Japan's Q4 GDP risk event, due at 23.50 GMT.
Nomura notes: "We think the OctDec 2014 real GDP figures will reveal growth of 4.8% q-o-q annualized (+1.2% q-o-q). We think strong growth in Oct-Dec would suggest the Japanese economy is steadily heading toward a recovery after declines of 6.7% q-o-q annualized in Apr-Jun, and 1.9% in Jul-Sep, in the wake of the consumption tax hike."
Jim Langlands, Founder at FXCharts, notes: "It looks to me as though the dollar could be in the process of building a short term Head/ Shoulders formation with a neck line at 118.40, a break of which would suggest a target of around 116.40. That may be optimistic and may never happen but worth keeping an eye on."
Nomura notes: "We think the OctDec 2014 real GDP figures will reveal growth of 4.8% q-o-q annualized (+1.2% q-o-q). We think strong growth in Oct-Dec would suggest the Japanese economy is steadily heading toward a recovery after declines of 6.7% q-o-q annualized in Apr-Jun, and 1.9% in Jul-Sep, in the wake of the consumption tax hike."
Jim Langlands, Founder at FXCharts, notes: "It looks to me as though the dollar could be in the process of building a short term Head/ Shoulders formation with a neck line at 118.40, a break of which would suggest a target of around 116.40. That may be optimistic and may never happen but worth keeping an eye on."