{"id":65686,"date":"2014-12-23T09:39:24","date_gmt":"2014-12-23T14:39:24","guid":{"rendered":"http:\/\/countingpips.com\/?p=65686"},"modified":"2014-12-23T11:35:50","modified_gmt":"2014-12-23T16:35:50","slug":"robust-gdp-and-solid-momentum-propel-usdjpy-toward-new-highs","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/12\/robust-gdp-and-solid-momentum-propel-usdjpy-toward-new-highs\/","title":{"rendered":"Robust GDP and Solid Momentum Propel USD\/JPY Toward New Highs"},"content":{"rendered":"
December 23, 2014<\/div>
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Article by ForexTime<\/a><\/p>\n

The USD\/JPY surged higher on the back of a stronger than expected 3rd<\/sup>quarter GDP report.\u00a0 Positive momentum gained traction, as the technicals now point to a higher greenback.\u00a0 Forward looking factory orders where somewhat disappointing, although business investment came in better than expected, which should help generate a robust Q4 GDP data point.<\/p>\n

U.S. Q3 GDP growth was revised upward to 5.0% from 3.9% in the prior release and 3.5% in the Advance report. Growth was 4.6% in Q2. It\u2019s the strongest back-to-back quarterly gain in 10 years. This robust number pushed U.S. interest rates higher driving up the greenback.<\/p>\n

Upward revisions to the GDP were widespread. Consumption was bumped up to 3.2% from 2.2% previously with improvement in both goods and services. Fixed investment was boosted to 7.7% from 6.2%, with nonresidential investment at an 8.9% rate from 7.1%, and residential at 3.2% from 2.7%. Government spending rose at a 4.4% rate after a 4.2% clip. Inventories subtracted a smaller than expected $2.6 billion versus -$5.7 billion previously. Net exports contributed $29.0 billion versus $29.4 billion previously. The GDP chain price index was steady at 1.4%, though the core rate slowed to 1.3% compared to 1.4%.<\/p>\n

On the flip side, U.S. durable goods orders fell 0.7% in November from a revised 0.3% October gain. Transportation orders, a major source of volatility since July, fell 1.2% following a 3.3% rebound previously. Excluding transportation, orders dipped 0.4% from -1.0%. Nondefense capital goods orders excluding aircraft were flat after two months of declines. Shipments slid 0.4% in November and the 0.1% October gain was nudged to -0.1%. Nondefense capital goods shipments excluding aircraft rose 0.2%. Inventories edged up 0.4%. The inventory-shipment ratio increased to 1.66 from 1.65.<\/p>\n

Support on the currency pair is seen in the 10-day moving average near 118.80, while resistance is seen near the recent highs at 121.70.\u00a0 Momentum has turned positive as the MACD (moving average convergence divergence) index generated a buy signal. This occurs when the spread (the 12-day moving average minus the 26-day moving average) crosses above the 9-day moving average of the spread.\u00a0 The index moved from negative to positive territory confirming the buy signal.<\/p>

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Article by ForexTime The USD\/JPY surged higher on the back of a stronger than expected 3rdquarter GDP report.\u00a0 Positive momentum gained traction, as the technicals now point to a higher greenback.\u00a0 Forward looking factory orders where somewhat disappointing, although business investment came in better than expected, which should help generate a robust Q4 GDP data […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-65686","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/65686","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=65686"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/65686\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=65686"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=65686"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=65686"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}