Japanese GDP and US Jobless Claims Drive Yen Demand in USD/JPY Forecast

The Japanese Yen rallied after strong Japanese GDP figures and a miss on US initial jobless claims data placed the dollar on the backfoot. A strong growth report may push the Bank of Japan to make policy changes sooner than expected. The USD/JPY daily chart shows a short-term rising wedge chart pattern centered around the 140.00 psychological level. A confirmed break below wedge support could open up the 138.45 zone. The week ahead is likely to remain relatively quiet as markets anticipate next week’s US CPI and FOMC announcement which is sure to stir up some volatility.