Breaking News

USD/JPY: Japan’s GDP Improves but Yen Slips

By MarketPulse (Kenny Fisher)CurrenciesMay 17, 2023 02:39PM ET

www.investing.com/analysis/usdjpy-japans-gdp-improves-but-yen-slips-200638196

By MarketPulse (Kenny Fisher) | May 17, 2023 02:39PM ET

Saved. See Saved Items.

This article has already been saved in your Saved Items

USD/JPY

+0.55%

Add to/Remove from Watchlist

USD/JPY climbs above 137
Japan’s GDP surprises to the upside
JPMorgan expects Fed to trim rates

The Japanese yen is on a four-day losing streak and is in negative territory on Wednesday. In the North American session, the yen is trading at 137.63, up 0.92% on the day.

Japan’s GDP beats estimate

Japan’s GDP in the first quarter was higher than expected. The economy grew by 1.6% y/y, after a 0.1% decline in Q4 2022 and easily beat the estimate of 0.7%. On a quarterly basis, GDP expanded by 0.4%, up from 0.0% in Q4 and above the estimate of 0.1%.

One key driver behind the spurt in growth was personal consumption, as demand continues to rise now that the country has reopened. The services sector remains strong but manufacturing continues to struggle. On a sour note, exports fell 4.2%, as demand for semiconductors and automobiles declined.

The uptick in growth means that sustainable inflation could stay above 2%, and that could prod the Bank of Japan to take steps toward normalization, such as adjusting its yield curve control (YCC) policy. The BoJ has said it would consider tightening policy if inflation is sustainable above 2%, but any shifts in policy are likely to be small, especially if the yen remains weak. The BoJ announced it would conduct a policy review which could take a year or more, and I would not expect the BoJ to raise rates before 2024.

Federal Reserve members continued to remind listeners that more rate hikes are possible if inflation stays high. The Fed has also tried to dampen expectations of rate cuts in the second half of the year. The markets are listening somewhat, as the odds of a rate cut this year have fallen. JPMorgan came out in support of rate cuts on Tuesday, saying that “the market is right to be penciling in cuts”, as inflation remains too high and the US was likely headed for a recession.

USD/JPY Technical

USD/JPY is testing resistance at 137.08. Above, the next resistance line is 138.42
There is support at 136.26 and 135.08

USD/JPY Daily Chart

Add a Comment

How Much Lower Can EUR/USD, GBP/USD Go in Light of Powell's Hawkish... By Günay Caymaz - Sep 22, 2023 2

US dollar continues to strengthen on Fed's hawkish stance EUR/USD could continue to head lower on the back of weak data from Eurozone Meanwhile, GBP/USD is now edging closer to...

Canadian Dollar Edges Higher as Retail Sales Rebound By Kenny Fisher - Sep 22, 2023

Canada retail sales climb 2% The Canadian dollar has posted losses on Friday. In the European session, USD/CAD is trading at 1.3446, down 0.28%.Canada’s Retail Sales...

Week Ahead – US core PCE and Eurozone flash CPIs eyed after rate pause... By Trading Point - Sep 22, 2023

PCE inflation to grab attention on Friday as Fed signals higher for longerBut markets might be more worried about a government shutdown Eurozone flash CPIs will also be the in the...

Add a Comment

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:

Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
Only English comments will be allowed.
Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

I have read Investing.com's comments guidelines and agree to the terms described.

I Agree

Write your thoughts here

Are you sure you want to delete this chart?

Delete Cancel

Post

Post also to:

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.

<div id="comment">
				<div class="comment js-comment" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
    <div class="mainComment js-content">
       <div class="commentInnerWrapper">
        <a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody">
                					<span class="commentUsername">
                    	<a href="{userLink}" class="js-user-link js-user-name">{username}</a>
					</span>
                                <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
                <div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

<div class="js-option addRow follow">
            <div class="js-follow-post-button" data-reg_ep="follow comment">
                <span class="alertfollowIcon middle"></span>Follow this post            </div>
            <div class="js-unfollow-post-button displayNoneImp">
                <span class="alertUnfollowIcon middle"></span>Unfollow this post            </div>
        </div>

<div class="addRow js-option save"  data-reg_ep="save comment">
		<a href="javascript:void(0);" class="js-save-item-btn" data-item-type="comments" data-item-id="{commentID}">
			<i class="saveItemBigIcon middle"></i>
			Save		</a>
	</div>
	<div class="addRow saveItemsConfirmation noHover displayNone js-saveItemResult">
		
<div class="content js-saveItemSuccess displayNone">
	<span class="mediumGreenSuccessIcon"></span><span>Saved. See <a href="/members-admin/saved-items" target="_blank">Saved Items</a>.</span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
<div class="content js-saveItemAlreadySaved saveItemAlreadySaved displayNoneImp">
	<span>This comment has already been saved in your <a href="/members-admin/saved-items" target="_blank">Saved Items</a></span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
	</div>

<div class="addRow shareButtons js-sharePopup displayNone">
			<div class="js-shareComment"><span class="js-shareCommentSpan"></span></div>
		</div>
	</div>
</div>
                 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div>             </div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="commentBigChart js-comment-chart" onclick="openViewChartPopup('{commentID}')">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

<div class="reportComment js-flag float_lang_base_2">
                            <a href="javascript:void(0);" id="commentFlag_{commentID}">
                                <span class="reportCommentIcon middle"></span><span class="inlineblock middle">Report</span>
                            </a>
                        </div>
                    				</div>
					</div>
	   </div>
	</div>
	</div>			</div>
			<div id="reply">
				
    <div class="commentReply js-comment js-comment-reply" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
		<div class="commentInnerWrapper"><a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody js-content">
            				<span class="commentUsername">
					<a href="{userLink}" class="commentUsername js-user-link js-user-name" onMouseOver="">{username}</a>
				</span>
                        <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
			 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div> 			<div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

</div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="replyBigChart displayNone js-comment-chart">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
				<span id="commentSmallChart{commentID}" class="commentSmallChart pointer js-comment-chart" onclick="openViewChartPopup('{commentID}')">
                    <img src="https://d1-invdn-com.investing.com/comments_images/{commentImageSmall}" width="116" height="52" alt="{commentAlt}">
                    <span class="chartMagnifyOverlay displayNone"></span>
                    <span class="searchGlassIcon chartMagnify displayNone"></span>
                </span>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

Are you sure you want to delete this chart?

Delete Cancel

Post

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

I feel that this comment is:

Spam

Offensive

Thank You!

Your report has been sent to our moderators for review

More Categories

1D1W1M6M1Y5YMax

US 30	34,063.5	-6.9	-0.02%
US 500	4,336.8	+6.8	+0.16%
Dow Jones	34,063.10	-7.32	-0.02%
S&P 500	4,336.80	+6.80	+0.16%
Nasdaq	13,272.42	+48.44	+0.37%
S&P 500 VIX	16.51	-1.03	-5.87%
Dollar Index	105.249	+0.205	+0.20%

Crude Oil WTI	90.47	+0.84	+0.94%
Brent Oil	93.72	+0.42	+0.45%
Natural Gas	2.640	+0.030	+1.15%
Gold	1,944.85	+5.25	+0.27%
Silver	23.823	+0.136	+0.57%
Copper	3.6965	+0.0005	+0.01%
US Soybeans	1,295.25	+1.25	+0.10%

U.S. 10Y	4.437	-0.045	-1.01%
U.S. 30Y	4.523	-0.029	-0.63%
U.S. 5Y	4.569	-0.047	-1.01%
U.S. 3M	5.482	-0.002	-0.04%
US 10Y T-Note	108.69	+0.27	+0.24%
Euro Bund	129.59	-0.01	-0.01%
10-2 Yield Spread	-77.46	-4.50	6.17%

Apple	175.58	+1.65	+0.95%
Alphabet A	131.01	+0.57	+0.44%
Tesla	246.75	-8.95	-3.50%
Amazon.com	129.82	+0.49	+0.38%
Netflix	381.83	-2.32	-0.60%
Meta Platforms	301.40	+5.67	+1.92%
Bank of America	27.70	-0.35	-1.25%

	Interest Rates	Next Meeting
FED	5.50%	Sep 20, 2023
ECB	4.50%	Oct 26, 2023
BOE	5.25%	Sep 21, 2023
SNB	1.75%	Dec 14, 2023
RBA	4.10%	Oct 03, 2023
BOC	5.00%	Oct 25, 2023
RBNZ	5.50%	Oct 04, 2023
BOJ	-0.10%	Sep 22, 2023
CBR	13.00%	Oct 27, 2023
RBI	6.50%	Oct 06, 2023
PBOC	3.45%
BCB	12.75%	Sep 20, 2023

USD/JPY: Japan’s GDP Improves but Yen Slips

Japan’s GDP beats estimate

USD/JPY Technical

Related Articles