US GDP Preview: what to expect of USD/JPY

The US Bureau of Economic Analysis will publish its advanced GDP figures for the third quarter. Market bets see the domestic economy expanding at an annualized 2.5% during the July-September period, up from the previous 1.4% gain.

A result in line with forecasts will see the upturn in the economy gathers further traction following the expansion of 1.1% seen in the first quarter and Q2’s 1.4% gain.

In the FX universe, USD/JPY remains well underpinned by the underlying bullish tone in the greenback in response to rising expectations of a rate hike by the Fed in December. On the JPY-side, rising yields across the global markets continue to undermine the safe haven, helping spot to clinch fresh 3-month peaks beyond 105.00 the figure. Further gains in the pair should need to overcome the key 200-day sma in the 107.00 neighbourhood ahead of July’s top in the mid-107.00s.