The US Dollar (USD) rose against the Japanese Yen (JPY) on Monday, increasing the price of the USDJPY pair to more than 103.00 following the release of the US Gross Domestic Product (GDP) news. The technical bias remains bearish since the USDJPY pair printed a lower low in the recent downside move.
Technical Analysis
As of this writing, the USDJPY pair consolidates around 103.54, with several key resistance levels seen nearby. The price is likely to face some major resistance near the given below price levels:
Short-Term Resistance Levels
104.26, the upper trendline arm
104.95, the major horizontal resistance
105.44, the Fibonacci retracement (61.8%)
On the downside, the USDJPY pair is expected to find some support near the given below price levels:
Short-Term Support Levels
102.86, the key horizontal support
102.05, the lower trendline arm
101.00, the psychological number
The technical bias should remain bearish as long as 105.44, a major technical resistance level, remains intact.
US Gross Domestic News
Gross domestic product in the United States rebounded at a 33.4% annualized rate last quarter, the Commerce Department said in its third estimate of GDP. That was revised slightly up from the 33.1% pace reported last month. It followed a 31.4% rate of contraction in the April-June quarter, the deepest since the government started keeping records in 1947.
The economy remains 3.5% below its level at the end of 2019. Economists polled by Reuters had expected third-quarter GDP would be unrevised at a 33.1% rate.
Trade Idea
Considering the overall technical and fundamental outlook, here is a short to medium term trading plan for the USDJPY pair:
Buy Stop: 104.00
Stop Loss: 103:50
Take Profit: 105:00