USD/JPY: advances likely in the near-term - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the yen was under pressure ever since the day started, as the Japanese Q1 GDP surprised to the upside, taking out some of the immediate pressure over the BOJ to add stimulus.

Key Quotes:

"The economy dodged a technical recession, at least in this past quarter, as the economy grew 0.4% against expectations of a 01% advance and fears of a negative reading. The USD/JPY advanced up to 110.04 following the hawkish FED's stance, which lifted odds of rate hike in June."

"The pair however, is not yet able to confirm a break above the critical psychological figure, weighed by nose-diving stocks. Nevertheless the technical bias is now bullish, as the pair finally broke above the 61.8% retracement of its latest daily fall at 109.55, now the immediate support."

"Additionally, short term technical readings support the advance, as in the 1 hour chart, indicators head north well above their mid-lines, whilst the 100 and 200 SMAs are finally gaining some bullish slopes well below the current level."