USD/JPY Shows Strength After Bad GDP Data
USD/JPY has bounced after the Fed statement, which clearly stated that the rate hike is inevitable after further job gains. We think it could come in September or December, but December seems more likely. According to a Reuters poll, economic growth in the US is picking up pace, which goes in accordance with Fed’s possible tightening monetary policy in September.
USD has shown strength even after bad preliminary GDP data.
Technically USD/JPY is showing V shaped reversal variant 2 with a possible rejection from current levels towards 123.40 zone. If rejection happens we could use POC zone at 123.40 ( 78.6, L4, historical buyers ) for a new long trade towards 124.55. 4H close above 124.55 will target 125.05. Judging from current sentiment even lower TFs show a predominant long trend and if we align lower with higher TF we are getting a good picture of an overall trend..
USD/JPY 4-Hour Chart