USD/JPY to accelerate its advance once above the 109.15 mark

The USD/JPY pair trades near its weekly high at around the 109.00 figure ahead of critical US data. The USD/JPY pair seems poised to extend its advance in the near-term, but the upcoming direction will depend on the US GDP result, Valeria Bednarik, Chief Analyst at FXStreet, reports.

Gains in stocks and government bond yields underpin USD/JPY

“US stocks closed in the red, but the mood improved in Asia, with indexes in the green and leading to positive developments among European ones. US Treasury yields tick higher, providing support to USD/JPY.”

“The US will publish later today the preliminary estimate of the first quarter Gross Domestic Product, foreseen at 6.1% from 4.3% in the previous quarter. The country will also publish March Pending Home Sales and Initial Jobless Claims for the week ended April 23.”

“The 4-hour chart shows that the risk is skewed to the upside, as the pair is not only pressuring weekly highs, but it has also bounced from a bullish 20 SMA.”

“The 200 SMA heads nowhere around 109.15, with a clear break above it hinting at additional gains ahead.”