JPY is bullish after publication of preliminary data on Prelim GDP which showed that in first quarter of this year growth rates makes up 0.8%.
In year calculus growth rates are higher than it was predicted and makes up 3,3% against previous value of 3,5% and forecast of 2,5%
The data show that for Japan the first quarter have passed not so successful, therefore increase of interest rates is less possible at present. Most likely the question about increase of interest rates will arise in the end of second quarter when the economy is able to recover from slowdown of demand of the US and Japan gets stronger inflationary pressure caused by rise in oil and food prices.
USD/JPY is bearish. The price could not break the resistance level formed by local maximums and technical turnout took place. It is expected that this level will be broken soon which is due to strengthening of USD.
In the case of turnout it is recommended to open long positions with target on 106.5. It is expected to be come up soon.
|