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17 Feb 2014
USD/JPY up, 102.00 on sight
FXStreet (Edinburgh) - The Japanese yen continues its depreciation against the greenback on Monday, pushing the USD/JPY to the vicinity of the 102.00 handle.
USD/JPY stronger after Japanese GDP data
The weakness around the JPY stems from the softer than expected GDP figures during the last three months of 2013. The domestic economy expanded 0.3% inter-quarter, matching the previous reading although below estimates at 0.7%. “The economy is expected to grow slightly faster in Q1 2014 at around 0.7%. In Q2, we expect a sharp contraction in domestic demand (-2%) following the VAT hike. GDP could contract by close to 1%. For 2014 as a whole we expect the economy to grow by about 1%”, suggested Raymond van der Putten, Analyst at BNP Paribas.
USD/JPY levels to consider
As of writing the pair is up 0.13% at 101.94 facing the next up barrier at 102.58 (high Feb.13) followed by 102.71 (high Feb.11) and then 102.94 (high Jan.31). On the flip side, a breakdown of 101.53 (daily cloud base) would target 101.50 (61.8% of 100.76-102.71) en route to 101.40 (low Feb.7).
USD/JPY stronger after Japanese GDP data
The weakness around the JPY stems from the softer than expected GDP figures during the last three months of 2013. The domestic economy expanded 0.3% inter-quarter, matching the previous reading although below estimates at 0.7%. “The economy is expected to grow slightly faster in Q1 2014 at around 0.7%. In Q2, we expect a sharp contraction in domestic demand (-2%) following the VAT hike. GDP could contract by close to 1%. For 2014 as a whole we expect the economy to grow by about 1%”, suggested Raymond van der Putten, Analyst at BNP Paribas.
USD/JPY levels to consider
As of writing the pair is up 0.13% at 101.94 facing the next up barrier at 102.58 (high Feb.13) followed by 102.71 (high Feb.11) and then 102.94 (high Jan.31). On the flip side, a breakdown of 101.53 (daily cloud base) would target 101.50 (61.8% of 100.76-102.71) en route to 101.40 (low Feb.7).