USD/JPY up more than 2%, near 121.30 on US GDP

By FXStreet FXStreet (Edinburgh) – The Japanese yen keeps the soft tone across the board today, with USD/JPY extending the upside to the 121.25/30 band so far.

USD/JPY ignores US data

Spot has practically bypassed today’s GDP release in the US economy, showing an expansion of 0.7% inter-quarter in Q4 although missing previous estimates at 0.8%. Further data saw the Goods Trade deficit at $61.5 billion and the Employment Cost Index matching expectations at 0.6% during Q4.

In the meantime, the pair keeps the upside intact in response to the BoJ’s rate cut at its meeting today, incurring in negative rates for the first time ever.

USD/JPY levels to watch

The pair is up 2.07% at 121.28 and a surpass of 121.49 (5200-day sma) would target 121.85 (76.4% Fibo of 123.67-115.96) en route to 123.67 (high Dec.2). On the other hand, the immediate support is located at 118.22 (20-day sma) followed by 117.78 (23.6% Fibo of 123.67-115.96) and finally 115.96 (low Jan.19).
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Source:: FX Street