USDJPY Longs Ahead – Japanese Yen Bolstered By Encouraging GDP

According to data released by the Japanese government on Wednesday (8/6), the real GDP rose by 0.5% in the March quarter, slightly ahead of the preliminary estimate of 0.4% released in May. The third largest economy looks to have had a slight recovery.  Nevertheless, economists said that the GDP was bolstered thanks to the effect of the extra day from the leap year. Consequently, the pair USDJPY started rising after being in a downtrend for some time. RSI (14) inched up to 33.6503 and has moved out of the oversold area. The stochastics chart shows that the pair has been in the oversold territory for a while, but the %K line (blue line) is about to cross the %D line (red line). The pair is anticipated to enter a bullish trend soon.

Trade suggestion

Buy stop at 106.900, Take profit at 107.234, Stop loss at 106.676

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