Japanese growth figures and the latest moves of the USDJPY

Nov 14, 3:47 pm
Yen_Japan

During the first trading day of the week and early morning hours of the Asian session, a few economic figures were released from Japan and China which had a notable impact on the markets. However, the US elections outcome and the positive momentum toward Trump’s action to calm the market is here to stay and has overshadowed these figures. In this article, we will cover the Japanese growth figures and the latest moves of the USDJPY.

Definition

GDP: Change in the inflation-adjusted value of all goods and services produced by the economy. There are 2 versions of GDP released about a month apart – Preliminary and Final. The preliminary release is the earliest and thus tends to have the highest impact. Source changed series calculation formula as of Dec 2004, Aug 2002, and Dec 2000.

GDP Price Index: Change in the price of all goods and services included in the GDP. It is released quarterly, about 45 days after the quarter ends.

Why This Is Important

GDP: It's the broadest measure of economic activity and the primary gauge of the economy's health.

GDP Price Index: It's the broadest measure of inflation, encompassing all activities included in GDP, and is a primary instrument that the central bank uses to assess inflation.

Outcomes

Indicator

Actual

Forecast

Prior

Prelim GDP

0.5%

0.2%

0.2%

Prelim GDP Price Index

-0.1%

0.3%

0.7%

Japan’s GDP came in much better than expected, adding 0.5% in Q3 of this year, while estimates pointed to a growth of 0.2% only. Moreover, the previous reading has been revised up to a growth of 0.2% instead of no growth in Q2 of this year. Today’s GDP growth is the highest GDP since Q1 of this year. More importantly, this is the third consecutive positive growth, one that we have not seen since 2013.

USDJPY: Highest Since June 

Despite the positive data today, the Japanese Yen decline across the board. USDJPY has been moving upwards since the beginning of the Asian session as the US Dollar keeps rising since Donald Trump's victory statement, which calmed the markets and built up a positive momentum for both the US stocks and the US Dollar at the same time.

The USDJPY is currently testing July’s solid resistance area, which stands at 107.49 and should be watched very carefully. A break above that resistance would clear the way for further gains ahead, probably above 108.0. On the other hand, a failure to break above that resistance would keep the chances for a possible leg lower over the coming weeks. In the meantime, the immediate support area stands at 106.70.

Levels To Watch

Symbol

S3

S2S1PivotR1R2

R3

USDJPY

106.60

106.67106.77106.84106.94107.01

107.11

EURJPY

115.32

115.47115.58115.73115.84115.99

116.10

AUDJPY

80.36

80.4780.5980.7080.8280.93

81.05

GBPJPY

134.00

134.11134.27134.38134.54134.65

134.81

CHFJPY

107.70

107.81107.91108.02108.12108.23

108.33

CADJPY

78.70

78.8278.9279.0479.1479.26

79.36

NZDJPY

75.36

75.6275.8276.0876.2876.54

76.74

 
Nour Eldeen Al-Hammoury

Nour Eldeen Al-Hammoury has more than ten years of experience in focusing on foreign exchange and global economic developments, as well as central bank policies and intermarket analysis (global markets relationships). Nour Eldeen is a regular on many major TV networks (several times each) such as: BBC Radio, BBC World News, Al-Jazeera, Al-Hurra TV CNBC Europe, CNBC Asia, CNBC Arabia, Al Arabiya, Bloomberg, Russia Today, Dubai TV, Sama Dubai, Skynews Arabia, Qatar TV and Future TV News.