USDJPY – bullish acceleration on upbeat US GDP cracks pivotal 30SMA barrier
The pair surged above 106 barrier and cracked pivotal barrier at 106.30 (falling 30SMA), as dollar rallied across the board on better than expected US GDP data.
US Gross Domestic Product rose by 2.9% in the last quarter of 2017, beating forecast for 2.7% increase and coming well above 2.5% in Q3.
The economy grew 2.3% in 2017, showing strong improvement from 1.5% in 2016.
Fresh dollar’s rally improves USDJPY pair’s near-term picture and sidelined downside risk which persisted while the price stayed below 10SMA and Fibo barrier at 105.80/87.
Bulls now look for close above 30SMA to generate fresh bullish signal for further retracement of 107.90/104.63 bear-phase and expose barriers at 106.65 and 107.13 (Fibo 61.8% and 76.4% respectively).
Broken 10SMA now marks solid support at 105.80, which is expected to keep the downside protected and maintain fresh bullish bias.
Res: 106.30; 106.65; 107.13; 107.29
Sup: 105.80; 105.32; 105.24; 105.00