USD/JPY eases from tops, but manages to hold above 106.00 mark

   •  Final US GDP print betters estimates and lifts the pair to fresh multi-day tops.
   •  Lack of follow-through USD buying interest/risk-off mood now seemed to cap gains.

The USD/JPY pair quickly retreated around 20-25 pips post-US GDP but has still managed to hold with strong gains, above the 106.00 handle. 

The pair spike to fresh multi-day tops following an upward revision of the US GDP print, now showing that the economic growth stood at 2.9% annualized pace during the fourth quarter of 2017. The up-move, however, ran into some resistance near the 106.35 region amid lack of follow-through US Dollar buying interest. 

Meanwhile, a fresh wave of global risk-aversion trade, further reinforced by the ongoing slide in the US Treasury bond yields underpinned the Japanese Yen's safe-haven appeal and collaborated towards capping additional gains. 

It would now be interesting to see if bulls are able to maintain their dominant position of the up-move turns out to be a dead-cat bounce and is utilized as an opportunity to initiate fresh short-positions. 

Focus now shifts to Atlanta President Raphael Bostic's scheduled speech, which might influence the USD price dynamics and eventually provide some fresh impetus later during the NY trading session.

Technical outlook

Valeria Bednarik, American Chief Analyst at FXStreet writes, “the 4 hours chart for the pair shows that its struggling around a modestly bearish 100 SMA, below a bearish 200 SMA, this last at 106.40. The Momentum indicator lost upward strength and consolidates well above its mid-line, while the RSI maintains its bullish slope around 61, all of which leans the scale toward the upside, with a break above 106.40 favoring an extension up to 107.00 region.”