FXStreet (Mumbai) – The USD bulls await on the sidelines ahead of the US Q2 GDP report, leaving the USD/JPY pair hovering around its 200-DMA located at 120.87 levels.
Awaits US GDP
The investors now await the US Q2 GDP, which is likely to keep the figure unrevised at an annualised rate of 3.7%. The core personal consumption expenditure (PCE) is seen unchanged at 1.8%. Whether or not the risk aversion in the financial markets seen today is extended further depends on the US GDP data.
Apart from the GDP data, the pair could also take cues from the sentiment on the Wall Street. At the moment, the S&P 500 futures indicate the index is likely to open 24 points higher.
USD/JPY Technical Levels
The immediate resistance is located at 121.32 (Sep 10 high), above which gains could be extended to 121.74 (Aug 28 high). On the other side, support is seen at 120.41 (July 8 low) and 120.00 levels.
(Market News Provided by FXstreet)