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USD/JPY back above 118.00 ahead of GDP data

FXStreet (Córdoba) - USD/JPY bottomed att 117.66 and rebounded trimming losses. The pair was able to rise above 118.00 and climbed to 118.20.

USD/JPY downside risks

Ahead of the release of the second estimate of the third quarter US GDP, the pair trades at 118.07, 20 pips below yesterday’s closing price. Regarding the economic report Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman seen risk to the on the downside of the consensus expectations for a 3.3% reading. The first estimate was 3.5%.

“The risks come from trade, where September exports fell, which was not known when the first estimate was made; consumer spending was also softer at the end of Q3, and construction spending was weaker”, wrote Chander.

Weak data from the US could push the pair toward daily lows that lie at 117.65, below the next support might lie at 117.30/35 (Nov 24 low). A better-than-expected reading could gave support to the US dollar to break above 118.20; above the next resistance might lie at 118.55 (daily high) and 118.70.

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