USD/JPY clinches fresh highs near 115.40 on poor US GDP

The greenback eased some ground vs. the Japanese safe haven on Friday following the US GDP figures, although USD/JPY managed to shrug off the initial dip and resume the daily upside soon afterwards.

USD/JPY gives away gains on data

Spot lost upside momentum after advanced US GDP figures missed consensus today, showing the economy is expected to expand at an annualized 1.9% during the October-December period, less than initially forecasted.

In the same direction, US Durable Goods Orders have contracted 0.4% during December vs. a 2.6% gain previously estimated, adding to the disappointing results. Excluding the Transportation sector, Orders expanded 0.5%, matching consensus.

Next on tap will be the final print of the US Consumer Sentiment for the month of January, seen at 98.1

Following the initial knee-jerk, spot has managed to recover the upper end of the range around 115.20, closer to daily highs, and always supported by the upside bias in US yields.

USD/JPY levels to consider

As of writing the pair is gaining 0.65% at 115.29 and a break above 115.62 (high Jan.19) would open the door to 116.86 (high Jan.11) and finally 118.61 (2017 high Jan.3). On the flip side, the next support is located at 114.54 (23.6% Fibo of the November-December 2015 up move) ahead of 114.40 (low Jan.27) and then 112.49 (low Jan.24).