USD/JPY: turning bullish within negative territory - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the Japanese yen held to its gains during the first half of the day, helped by an upward surprise coming from Q2 GDP readings, up by 0.7% in the three months to June, against expectations of 0.0%.

Key Quotes:

"During the past Asian session, Bank of Japan’s Deputy Governor, Hiroshi Nakaso, signaled that rates could be cut deeper into negative territory, but failed to trigger a market's reaction."

"The USD/JPY pair remained mute, also after the ECB's announcement, but finally broke higher on dollar's demand, up to 102.54, where it stands by Wall Street's close. The  pair  trimmed part of its weekly gains, and the short term picture has turned partially bullish, as in the 1 hour chart, indicators have resumed their advances within overbought levels after a brief consolidative stage, although the price remains below a bearish 100 SMA, currently around 102.60, and the level to surpass to confirm further gains."

"In the 4 hours chart, the price is now above its 100 and 200 SMAs, while indicators have bounced sharply from their oversold levels, maintaining sharp bullish slopes, but within negative territory."