USD/JPY: Yen extends gains on upbeat Q4 GDP, attacks 113

By FXStreet USD/JPY met fresh supply just ahead of 113.50 levels and fell once again in the red after the yen jumped back on the bids on the back of above estimates Japan’s final Q4 GDP estimates.

USD/JPY capped below 113.50 – support turned resistance

The dollar-yen pair’s recovery from NY lows near 113.20 lost legs at 113.52, and the prices came under renewed selling pressure in the recent dealings after the Japanese final Q4 GDP figures revealed that the contraction was revised lower than previously reported. At the time of writing, USD/JPY drops to fresh session lows of 113.16, down -0.26% on the day.

The economy contracted 0.3% in Q4 2015 as compared to the previous estimate of -0.4%. The lower revision was mainly on the back of slight improvement in the private demand, which fell 0.5% over the quarter, instead of 0.6%.

Moreover, the extension of the risk-off mode into Asia, with the Japanese stocks extending losses, also bolsters the safe-haven bids for the yen. The Nikkei 225 index drops -0.40% to 16,845. Later today, focus will continue to remain on the stocks and oil markets for fresh incentives as the US economic calendar remains absolutely data-empty.

USD/JPY Technical levels to watch

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Source:: FX Street