USD/JPY approaches 105.50 on upbeat US GDP

The greenback is picking up further pace vs. its Japanese peer at the end of the week, now lifting USD/JPY to the area of 105.50, or fresh peaks.

USD/JPY bid after data

Spot has accelerated its upside to fresh 3-month tops after US advanced GDP figures showed the economy is expected to expand at an annualized 2.9% during the third quarter, bettering initial estimates for a 2.5% gain.

Further results in the US docket saw the Employment Cost Index (ECI) staying put at 0.6% during the July-September period, in line with forecasts. Later in the NA session, the final print of US Consumer Sentiment during October is expected to improve a tad from the September’s reading.

In the meantime, the selling pressure around the Japanese Yen remains well and sound against the backdrop of higher yields in the global markets as opposed to the a priori effective ‘yield control’ by the BoJ, which keeps yields in JGBs subdued.

USD/JPY levels to consider

As of writing the pair is up 0.09% at 105.38 facing the immediate hurdle at 107.01 (200-day sma) ahead of 107.48 (high Jul.21) and finally 111.45 (high May 30). On the downside, a break below 103.83 (20-day sma) would open the door to 102.78 (low Oct.10) and then 102.37 (55-day sma).