Never miss a story from Megha Torpunuri

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Megha Torpunuri

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.


  • Japanese Yen pared slight gains in response to mixed 4Q preliminary GDP data
  • USD/JPY nearing resistance levels at 110.995-111.564, gains may continue
  • Japanese CPI, US-China trade talks, and Brexit developments in focus

The Japanese Yen cautiously gained against the US Dollar as local economic data crossed the wires early into Thursday’s Asia Pacific trading session. Preliminary annualized GDP for the fourth quarter came in at 1.4%, in line with the estimate and up from -2.6%. Meanwhile the initial seasonally adjusted growth figure for 4Q was 0.3%, a decline from the forecast of 0.4% but an improvement from the -0.6% prior. However, in spite of the mostly in-line data, the currency pair soon pared its losses.

USD/JPY 5-Minute Chart

Chart of USD/JPY (5-minute)

Despite the initial slight downtick in prices, the currency pair has rallied for the majority of this year and is currently testing resistance levels in the 110.995-111.564 range. Traders may look for confirmation via daily closing above this range, which may confirm positive RSI divergence. However, a break below the ascending January 2019 trend line may indicate further bearish momentum.

USD/JPY Daily Chart

Chart of USD/JPY (Daily)

Looking ahead, the currency pair will be closely eyeing the release of December’s month-on-month US retail sales, in addition to preliminary University of Michigan consumer sentiment for February. January’s Japanese CPI data may also offer next cues. Furthermore, equities’ reaction to fundamental themes will continue to dominate next moves, as US-China trade talks resume today and UK Prime Minister Theresa May continues to struggle to broker a Brexit deal.

USD/JPY Trading Resources

--- Written by Megha Torpunuri, DailyFX Research Team