USD/JPY building momentum ahead of Japan’s final GDP

By FXStreet FXStreet (Mumbai) – USD/JPY keeps its range-trade intact during the European session, rebounding from fresh weekly lows reached on Friday, as traders now turn their focus towards Tuesday’s Japan’s final Q2 GDP figures amid subdued trading activity witnessed today.

USD/JPY capped below 119.50

Currently, the USD/JPY pair trades 0.31% higher at 119.38, unable to extend beyond 119.50- key resistance. The US dollar recovered nearly a half of Friday slide and now trades firmer versus the Japanese yen as markets continue to assess chances of a Sept Fed rate hike after the US jobs report, keeping the USD bulls boosted.

Moreover, the yen had to tackle a slightly diminishing need for safe-haven today, despite another decline of equity markets in Asia, led by the benchmark Shanghai Composite index which ended 2.52% lower at 3,080 points.

Later today, markets are expected to be calm amid no economic news from the Euro zone economies while the US financial markets remained closed celebrating Labor Day.

The focus now shifts towards Japanese GDP data for fresh cues ahead of next week’s BOJ monetary policy decision.

USD/JPY Technical levels to consider

To the upside, the next resistance is located 119.59 (Today’s High) levels and above which it could extend 120.19 (Sept …read more

Source:: FX Street