USD/JPY Poised For Major Breakout Amid Surprise Jump in Japan’s Growth

FXOpen

The US Dollar (USD) fell broadly against the Japanese Yen (JPY) yesterday, dragging the USD/JPY to less than 101.80 following a surprise increase in the Japan’s growth during the first quarter. The sentiment remains bullish due to Higher Low (HL) in the recent wave. A breakout through the daily triangle will provide clear direction to the pair.

Technical Analysis

As of this writing, the pair is being traded near 101.87. A support can be noted around 101.59 which is the lower trendline as demonstrated in the following chart. A break and daily closing below the trendline support will push the pair into negative territory, turning the overall sentiment to bearish.

usdjpy-d1-

On the upside, the pair is likely to face a hurdle around 102.00 that is the psychological number and 38.2% fib level ahead of 102.35, the 55 Simple Moving Average (SMA) and then the trendline resistance which is currently sitting in near 101.51. A break and daily closing above the trendline resistance will validate a rally towards the 104.12 resistance area.

Japan GDP Report

Japan grew at 5.9% during the first four months of the ongoing year as compared to just 0.3% growth in the same duration of the year before, a government report revealed yesterday up beating the median projection of 4.2% growth rate. The report showed huge jump in the growth of the Asian nation, signaling that the economic policies of the Prime Minister Shinzo Abe, dubbed as Abenomics, are yielding favorable outcomes.

Conclusion

The Japanese growth figure has confirmed the view of investors that the Bank of Japan (BoJ) will stick to the current pace of the asset purchase program, halting further fall of the Japanese Yen against the greenback. Buying or selling USD/JPY on breakout could be the safest strategy in this scenario.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Commodities and European currencies Test Key Supports EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News

Latest articles

Indices

Although UK-100 Index Is Near All-time Highs, UK Economy Slips into Recession

Technically, a national economic recession is defined as two consecutive quarters of contraction, and yesterday's Office for National Statistics data confirmed that this has happened — UK GDP fell in the third and fourth quarters of 2023 by 0.1% and

Cryptocurrencies

DOGE Price Increases by 170% in Less Than 2 Months

On February 1, 2024, the DOGE/USD rate was = 0.0783. On the last Friday of March, it rose to 0.2150. The rising price means Dogecoin is now the eighth-largest cryptocurrency in the world by market capitalization, overtaking Cardano

Commodities

Market Analysis: Gold Price and Crude Oil Price Gain Bullish Momentum

Gold price started a steady increase above the $2,200 resistance level. Crude oil prices are gaining bullish momentum and might rise toward $85.00.

Important Takeaways for Gold and Oil Prices Analysis Today

· Gold price started a decent increase

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.