USD/JPY: bulls relieved on poor Japanese GDP outcome, settled above 101.20 support

 USD/JPY is holding onto gains and levels out on the 101.20 level in Tokyo after poor performances in Japanese growth,

We had a big miss recorded in the Japanese GDP figures today with Japan's preliminary real Q2 2016 GDP data falling in at just 0% q/q vs 0.2% expected. We now await the industrial production numbers as next major catalyst for Yen pairs while further into the week we will have the FOMC minutes.

USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained that technically, "The daily chart shows that the pair continues pressuring a major long term support around 100.65, the 50% retracement of its "Abenomics" rally between 2011 and 2015, while developing far below its moving averages, and with the technical indicators resuming their declines well below their mid-lines, all of which support some further slides."

To the upside, analysts at Commerzbank explained that rallies will need to regain 103.55 in order to challenge cloud resistance, which today lies at 103.04/105.44. "Rallies will find additional resistance at 103.59, the 20 day ma and 104.45, the 55 day ma. Only a close above 105.45 would alleviate immediate downside pressure and only above 107.49 (recent high) would confirm upside intent."