USD/JPY hits session high after US GDP beats estimates

FXStreet (Mumbai) - The USD/JPY pair hit a session high of 119.43 after the data in the second estimate of the Q4 US GDP showed a growth rate higher that the estimates, although gains were capped since there was hardly any reaction in the SU 10-year Treasury yields.

USD/JPY: Gains capped as US GDP revised lower

The second estimate of the US Q4 GDP printed at 2.2%, beating the estimate of 2.0%. However, the growth rate was revised lower from the initial report of 2.6%. The personal consumption came-in at 4.2%, missing the estimate of 4.3%. Consequently, the 10-year Treasury yields remained largely unchanged in the range of 2.015 to 2.03%, thereby keeping the USD/JPY around 119.40 levels.

USD/JPY Technical Levels

The immediate support is seen at 118.90, under which losses could be extended to 118.42 levels. On the flip side, the pair could rise to 120.00 levels if the pair manages to sustain above 119.40 levels.