Falling Japanese GDP bullish for USDJPY
Technical Analysis Summary USD/JPY: Buy
| Indicator | Nilai | Signal |
| Stochastic | Sell | |
| MACD | Buy | |
| Donchian Channel | Buy | |
| MA(200) | Buy | |
| Fractals | Buy | |
| Parabolic SAR | Buy |
Chart Analysis
On 1-hour timeframe USDJPY: H1 has risen above the 200-period moving average MA(200) which is rising itself. We believe the bullish momentum will continue after the price breaches above the upper bound of the Donchian channel at 109.89. A level above this can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 109.80. After placing the order, the stop loss is to be moved to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
Fundamental Analysis -
Japan’s economy shrank in the last quarter of 2019. Will the USDJPY continue rebounding?
Japan’s Q4 GDP fell 6.3% over year in 2019, much sharper than expected, following an 1.6% upwardly revised growth in Q3. This is bearish for Japanese yen against the dollar.