USD/JPY on its way to test Wednesday’s low, shrugs off poor GDP

The yen reverses weaker Japanese GDP-led losses and now swung back into positive territory versus, knocking-off USD/JPY to fresh session lows near the mid-point of 113 handle.

USD/JPY back below 5-DMA at 113.74

The dollar-yen pair ran through fresh sellers just ahead of 5-DMA after the US dollar came under renewed selling pressure against its main peers amid fresh sell-off seen in the shorter-duration treasury yields.

Moreover, a retreat in the Japanese stocks from multi-month tops on profit-taking, also weighed on the investor’s’ sentiment, boosting the safe-haven appeal of the yen.

While markets moved past worse-than expected Japanese Q3 final GDP print, while upbeat trade figures from Japan somewhat buoyed the sentiment around the yen. Japan (final) Q3 GDP arrived at +0.3% q/q versus 0.5% expected, and 0.5% preliminary. The major is last seen changing hands near session troughs struck at 113.47, down -0.18% the day.

Focus now remains on the Chinese trade data and the much-awaited ECB policy decision, which is expected to have major impact across the fx board.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 113.74 (5-DMA). A break above the last, the major could test 114 (zero figure) and 114.83 (10-month high) beyond the last. While to the