USD/JPY clinches highs post-US GDP, 113.00 closer

The greenback is now gathering further traction vs. its Japanese counterpart on Thursday, lifting USD/JPY to multi-week tops around 112.80

USD/JPY in 6-week tops

The pair managed to move higher today after final US GDP figures showed the economy expanded at an annualized 1.4% during the January-March period, beating initial forecasts.

Additional data from the US docket saw Initial Claims increasing to 244K WoW, taking the 4-Week Average to 242.25K from 245.00K.

Yields in the US money markets have climbed higher in the wake of the release, with the 10-year reference testing the 2.29% level, or 6-week highs. Furthermore, the probability of a rate hike by the Federal Reserve at the December meeting moved up to nearly 48% according to CME Group's FedWatch tool.

Next on tap in the Japanese calendar, inflation figures for the month of June are due tomorrow followed by household spending, industrial production and results from the labour market.

USD/JPY levels to consider

As of writing the pair is gaining 0.53% at 112.88 and a breakout of 113.07 (76.4% Fibo of the May-June drop) would open the door to 114.39 (high May 11) and finally 114.93 (high Mar.13). On the other hand, the next support is located at 111.72 (10-day sma) followed by 111.60 (50% Fibo of the May-June drop) and then 110.92 (low Jun.22).