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Thomson Reuters
Mar 01 - 07:24 AM
USD/JPY - COMMENT-U.S. GDP Pushes USD/JPY Above 200-DMA: Game Change
First appeared on eFXplus on Mar 01 - 05:05 AM

Treasury yields surged after U.S. data showed economic growth was stronger than expected in the fourth quarter, helping to drive up USD/JPY demand nL3N20O1O2, nUSNSDEFQK.
There is a significant relationship between 10-year JGB-UST spread and USD/JPY: The 30-day (log) correlation is currently at +0.56, meaning as the spread widens, USD/JPY rises.
From a technical standpoint, USD/JPY registered a daily close above the 200-DMA, now at 111.34, for the first time since the end of December 2018.
That will give USD/JPY bulls a boost at the beginning of March, meaning the 112.08 Fibonacci level, a 76.4 percent of the 114.53 to 104.10 (October to January) drop.
A daily close above the 112.08 Fibo could see the market rise to test the 113.00 level.

Daily Bollinger Chart: Click here

UST-JGB vs USD/JPY Daily Chart: Click here

Source:
Thomson Reuters IFR Markets

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