CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open an account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open an account
✖

USDJPY Unaffected by Terrible GDP

February 17, 2020 3:06 PM

Yikes!!!  The GDP data out of Japan earlier during Asian hours was nothing short of awful.  The Annualized Preliminary GDP Growth Rate for Q4 was -6.3% vs an expectation of -3.7% and 0.5% in Q3.  Granted, Japan did introduce a new sales tax AND they had a devastating typhoon.  However, those were already factored into the estimate of -3.7%!!! 

But USD/JPY is immune to bad data from Japan, which has been fairly weak for the past couple decades (yes, decades).  So, bad data is good data.  Traders know that the government will be there to provide more stimulus if need be. 

On another note, in addition to the bad GDP data concerns are growing about the Coronavirus in Japan.  Japan is shutting down large public events to prevent any contagion that may occur,  including emperor’s birthday celebrations and the Tokyo Marathon (except to elite runners).  Could this eventually feed through to GDP as it is in China???

USD/JPY barely even flinched on the data.  On a 30-minute chart, price traded in a tight range upon the release, moving over the next half hour between 109.82 down to 109.72 and back. 

Source: Tradingview, FOREX.com

On a weekly timeframe, USD/JPY is trading within a symmetrical triangle, near the top of the downward sloping trendline.   This trendline dates back to the first week of June 2015 and is just above the 200 Week Moving Average.  If the pair closes above 110.30 on a weekly basis, it has immediate room to run to near 111.50. 

Source: Tradingview, FOREX.com

On a daily timeframe, we get a better look of how close USD/JPY is to the downward sloping long-term trendline, as well as previous highs at 110.30.  There is strong support below at a confluence of supports near 108.30/50.  Near this level is the upward sloping trendline from the August 23rd, 2019 lows, the 200 Day Moving Average and previous lows from February 3rd. 

Source: Tradingview, FOREX.com

As USD/JPY approaches the apex of the long-term symmetrical triangle on the weekly chart, watch for a breakout above 110.30.  There will likely need to be a catalyst to get the pair moving to the upside.  However,  one thing that seems unlikely to be the catalyst for a move is Japan’s economic data!

StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.

StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please ensure you fully understand the risks involved by reading our full risk warning.

FOREX.com is a trading name of StoneX Europe Limited, and FOREX.com/ie is a domain operated by StoneX Europe Ltd, a member of StoneX Group Inc. StoneX Europe Ltd, is a Cyprus Investment Firm (CIF) company registered to the Department of Registrar of Companies and Official Receiver with a Registration Number HE409708, and authorized and regulated by the Cyprus Securities & Exchange Commission (CySEC) under license number 400/21. StoneX Europe is a Member of the Investor Compensation Fund (ICF) and has its registered address at Nikokreontos 2, 5th Floor, 1066 Nicosia, Cyprus.

StoneX Europe Limited is registered with the German Federal Financial Supervisory Authority (BaFin). BaFin registration ID: 10160255

FOREX.com is a trademark of StoneX Europe Ltd, a member of StoneX Group Inc.

The statistical data and the awards received refer to the Global FOREX.com brand.

This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy.

Through passporting, StoneX Europe is allowed to provide its services and products on a cross-border basis to the following European Economic Area ("EEA") states: Austria, Bulgaria, Croatia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.

Additionally, StoneX Europe Ltd is allowed to provide Investment and Ancillary Services to the following non-EU jurisdiction: Switzerland.

StoneX Europe Ltd products, services and information are not intended for residents other than the ones stated above.

Tied Agent Information: KQ Markets Europe Ltd with Company No. HE427857.
Address: Athalassas 62, Mezzanine, Strovolos, Nicosia Cyprus.
Services Provided: Reception and Transmission of Orders.
Commencement Date: 06/12/2022
Website: KQ Markets - CFD Trading | KQ Markets

We may pay inducements, such as commissions or fees, to affiliates or third-party introducers for referring clients to us. This is in line with regulatory guidelines and fully disclosed where applicable.

StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation. StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.

© FOREX.COM 2025