FXStreet (Mumbai) – The Japanese yen erased most gains versus its US counterpart in the mid-European trades, with USD/JPY consolidating below 124 barrier. The yen rebounded today from fresh twelve year lows on better-than-expected Japanese inflation figures, while markets now shift their focus towards revised US GDP for fresh direction.
USD/JPY stuck below 124
Currently, the USD/JPY pair trades -0.18% lower at 123.84, attempting another bounce to 124 barrier. The USD/JPY pair keeps range around 123.80 as the US dollar trades with minor losses in anticipation of worse than expected US GDP print. The US GDP revision which is expected to show a steep 0.9% contraction in output.
The yen rebounded sharply from fresh twelve year lows and edged higher versus the greenback in Asia largely on the back of better than expected national core CPI from Japan which rose 0.3% y/y in April, a sharp deceleration from the 2.2% rise recorded in March, although beating expectations of only a 0.2% rise. Tokyo Core CPI figures also came in line with forecasts at 0.2% in April.
Meanwhile, markets now turn their focus towards the much anticipated US GDP figures, Chicago PMI and consumer sentiment data for further incentives.
USD/JPY Technical Levels
To the upside, the next resistance is located at 124 levels and above which it could extend gains 124.47 (May 28 High) levels. To the downside immediate support might be located at 123.47 (May 28 Low) below that at 123 levels.
(Market News Provided by FXstreet)