The Japanese yen has met our expectations and showed a strong growth.
The strong Japanese economic data and unexpectedly aggressive FOMC protocol helped the pair USD/JPY.
The GDP for the 2nd quarter of the 2nd assessment: an increase by 0.4% vs. 0.1%, the annual assessment 1.7% against the expectations of 0.2% -0.3%. The GDP private consumption increased by 0.5% vs. 0.2% for the quarterly period. This means that talks about the recession are meaningless.
Today, the good news continues. The core machinery orders increased by 5.5% vs. 0.5%.
Today, two key figures from the Fed, William Dudley and Stanley Fischer will have speeches. The US will also provide data on Philadelphia Fed Manufacturing Index, which is expected to increase by 3.5 against last fall by 1.6%.
How to trade
We would buy call options if the pair rises above 110.85.
Target price: 110.85
Expiry time: 20:00 GMT