USDJPY surges through 130 barrier after dovish BOJ; US GDP data eyed for fresh signals

The USDJPY accelerated sharply higher on Thursday and broke above psychological 130 barrier, to hit 20-year high and test pivotal Fibo barrier at 130.65 (76.4% retracement of 1998/2011 147.68/75.55 downtrend.
The Japanese yen is in strong downtrend for over one year, with fresh increased pressure coming from the Bank of Japan’s decision to keep ultra-low interest rates and maintain its massive stimulus, diverging from its major peers which already started shifting towards tighter monetary policy.
The pair advanced nearly 1.7% in the Asian and early European session on Thursday, with sustained break above 130.00/65 pivots, to generate fresh bullish signal for further rally.
Technical studies on daily chart are in full bullish setup and support the action, along with overall dollar-supportive fundamentals, as geopolitical tensions rise and continue to prompt traders into safe-haven greenback.
US GDP data for the first quarter of 2022 are the key event today, with estimation for the US economy’s growth to reduce pace to 1.1% from 6.9% in Q4, however, previous data point to optimistic view that the economy would stay on recovery track.
This would add to positive signals for the greenback, which remains supported by expectations for the Fed’s aggressive approach to the monetary policy tightening in the coming months and safe-haven buying.
Bulls are on track for the second consecutive strong monthly advance and focus Jan 2002 high at 135.16, violation of which would unmask 1998 peak at 147.68.
Broken 130 level reverted to initial support, followed by previous high of Apr 20 at 129.40 and rising 10DMA (128.15).

Res: 130.92; 131.28; 131.86; 132.80
Sup: 130.00; 129.40; 128.98; 128.33