USD/JPY turns higher after upbeat US GDP print

The USD/JPY pair gained some traction, during early NA session, in response to mixed US economic data but remained below 118.00 handle. 

Currently hovering around 117.85 region, testing session peak, the pair caught fresh bids after the US GDP growth was revised up to 3.5% annualized rate during the third quarter of 2016. Upbeat growth numbers provide some impetus for the major, which traded in narrow band for majority of trading session on Thursday. 

In other releases, US durable goods orders reversed all of its gains recorded in the previous month and contracted sharply by 4.6% in December, albeit was marginally above 4.7% contraction expected. Meanwhile, initial weekly jobless claims also disappointed to show an unexpected rise of 21K for the week ended Dec. 16.

Today’s mixed data did little to dent the strong positive sentiment surrounding the greenback, but in fact helped the broader US Dollar Index to recover early lost ground and move in to positive territory. 

Technical levels to watch

From current levels, weakness below 117.40 level (session low) seems to accelerate the slide towards 117.00 handle below which the corrective move could further get extended towards weekly lows support near 116.55 area. On the flip side, 118.00 handle remains immediate resistance, which if conquered has the potential to lift the pair beyond 118.20-25 resistance towards testing its next major hurdle near 118.65 level (multi-month high).