USD/JPY spikes to 7-week high on strong GDP

By FXstreet.com | July 30, 2014 AAA

FXStreet (Córdoba) - The USD/JPY rallied to fresh 7-week highs after preliminary data showed the US economy grew more than expected in 2Q.



The US GDP rose 4.0% in Q2 versus 3.0% expected, recording the strongest pace since 2003. Data also showed inflation (measured by PCE) inched above the Fed's 2% target for the first time since early 2012.



The USD/JPY rose sharply as data supports the case of rate hikes by the Fed early next year, boosting the greenback across the board. The USD/JPY gained nearly 30 pips in a matter of minutes and reached a peak of 102.49.



At time of writing, the pair is trading at 102.45, up 0.34% on the day, with next resistance arising at 102.64 (Jun 9 high), while immediate support is now seen at 102.00 (psychological level).



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