USD/JPY to turn higher ahead of US GDP data
The USD/JPY consolidated around 109.80 ahead of US GDP data and then traded higher to touch 110.00 high on weaker than expected Japanese inflation data. The USD/JPY might have found support as Federal Reserve officials bolstered expectations of an interest rate hike next month. Breaking the interim resistance 110.10 will support the upward movement and continue surging higher to touch 110.40, 110.70 and 111.10 respectively.
However, the G7 meeting today might give dovish tones, thus pushing the yen higher. Cutting 109.45 will lead to further declines to target near-term support levels 109.00 and 108.65.
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