USD/JPY appears to be like able to bounce forward of the U.S. GDP report!

Can in the present day’s launch lengthen the greenback’s positive factors in opposition to the yen?

Earlier than shifting on, ICYMI, yesterday’s watchlist checked out USD/CAD’s triangle consolidation forward of BOC’s coverage determination. Make sure to try if it’s nonetheless a legitimate play!

And now for the headlines that rocked the markets within the final buying and selling classes:

Recent Market Headlines & Financial Knowledge:

BOC hikes charges by 25bps to 4.50% as anticipated, alerts data-dependent “conditional pause”

BOC Gov. Macklem: “We’re not even interested by cuts.”

BOJ policymakers divided on wage, inflation outlook, January assembly abstract reveals

Shares in Asia hit recent 7-month excessive, U.S. GDP knowledge awaited

Greenback wobbles close to eight-month low forward of c.financial institution conferences

UK’s CBI realized gross sales at 11:00 am GMT
US advance GDP report at 1:30 pm GMT
US core sturdy items orders at 1:30 pm GMT
US preliminary jobless claims at 1:30 pm GMT
US new residence gross sales at 3:00 pm GMT
Tokyo’s core CPI at 11:30 pm GMT
NZ ANZ enterprise confidence at 12:00 am GMT (Jan 27)

Use our new Foreign money Warmth Map to rapidly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️

What to Watch: USD/JPY

USD/JPY 1-hour Foreign exchange Chart by TradingView

In just a few hours, we’ll see the first studying of Uncle Sam’s development for the final quarter of the yr. Markets see the financial system rising by an annualized price of two.6%, decrease than the three.2% uptick seen in Q3.

A stronger-than-expected GDP launch would make it simpler for Fed members to maintain on elevating their rates of interest till inflation turns even decrease.

Which means holding USD would get larger yields and appeal to extra consumers!

Hawkish Fed expectations might lengthen USD/JPY’s uptrend within the 1-hour timeframe. As you possibly can see, the pair is already able to bounce from the 200 SMA and an ascending channel help that hasn’t been damaged in weeks.

Improved USD demand may increase USD/JPY all the best way to the 130.80 or 131.00 earlier inflection factors.

I wouldn’t low cost a draw back breakout although.

A disappointing US GDP knowledge would weigh on USD demand and doubtless remind merchants that the Financial institution of Japan (BOJ) may see a much less dovish (and even hawkish) shift as quickly because it will get a brand new head honcho later this yr.

A weak U.S. GDP or a spherical of USD-selling might drag USD/JPY again right down to the 129.00 psychological degree. It might even break the channel help!

Whichever bias you find yourself buying and selling, make certain to make use of correct threat administration so you possibly can commerce for an additional day!