USDJPY moves to test highs but coming back off alittle
The initial reaction was higher on the GDP as the headline number beat at 2.3% vs. 2.0%. However the GDP Price index was light at 2.0% vs 2.2% estimate (and 2.3% last). The core PCE was 2.5% vs expectations of the 2.5%.
The price action in the USDJPY took the price toward the high of the day. The high reached 109.445. The high for the day (which was a new high for the move ) took the price to 109.476.
A move above that level is eyed.
Looking at the daily chart, on a break higher the 109.664 is the 50% of the move down from the NOvember 2017 high. That level and the 200 day MA at 110.239 are upside targets.
PS the EURUSD is trading to new session lows (higher dollar). The GBPUSD remains near its lows after getting hammered today.
PSS the stock market is a bit higher. The Dow is down -12 points. The Nasdaq is up 114 points.
PSS US yields are rebounding. The 10 year is near unchanged now . It was down -1.4 bp at the start of the day (click here) . The better growth will likely keep the Fed on track with their tightening bias.