Key Highlights
- USD/JPY started a fresh surge and cleared the 130.00 resistance.
- It traded to a new multi-year high and spiked above 131.00.
- EUR/USD extended decline below 1.0550, and GBP/USD traded below 1.2500.
- The US GDP contracted 1.4% in Q1 2022 (Prelim).
USD/JPY Technical Analysis
The US Dollar remained well supported near the 127.00 zone against the Japanese Yen. USD/JPY started a fresh surge and broke the last swing high at 129.40.
Looking at the 4-hours chart, the pair gained pace above the 129.50 level. There was even a close above the 130.00 level, the 200 simple moving average (green, 4-hours), and the 100 simple moving average (red, 4-hours).
The pair spiked above 131.00 and traded to a new multi-year high. The current price action suggests high chances of more upsides above 131.00.
The next major resistance is seen near the 131.50 level, above which the pair could rise towards 132.80. If there is a downside correction, the pair might find support near 130.00. The next major support is near the 129.40 level. Any more losses may perhaps open the doors for a move towards the 127.00 support zone.
Fundamentally, the US Gross Domestic Product for Q1 2022 (Prelim) was released yesterday by the US Bureau of Economic Analysis. The market was looking for an increase of 1.1% in the GDP.
The actual result was disappointing, as the US GDP contracted 1.4% in Q1 2022 (Prelim) (according to the “advance” estimate released by the Bureau of Economic Analysis).
Looking at EUR/USD, the pair failed to recover losses and extended its decline below the key 1.0550 support zone.
Economic Releases
- German Gross Domestic Product for Q1 2022 (YoY) (Prelim) – Forecast 3.6%, versus 1.8% previous.
- German Gross Domestic Product for Q1 2022 (QoQ) (Prelim) – Forecast 0.1%, versus -0.3% previous.
- Euro Zone Gross Domestic Product for Q1 2022 (QoQ) (Prelim) – Forecast 0.3%, versus 0.3% previous.
- Euro Zone Gross Domestic Product for Q1 2022 (YoY) (Prelim) – Forecast 5.0%, versus 4.6% previous.
- US Personal Income for March 2022 (MoM) – Forecast +0.4%, versus +0.5% previous.
