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Forex: USD/JPY falls to 98.13 low after US growth at 2.5% in Q1 (YoY)
FXstreet.com (Barcelona) - The USD/JPY slipped to 98.13 low following the preliminary publication of US GDP in Q1. Annualized data had a big improvement from Q4, from 0.4% to 2.5% growth, but came in lower than market consensus of 3.0%. GDP price also failed to meet expectations: up from 1.0% to 1.2%, below 1.4% consensus.
The US economic calendar also presented flash Personal Consumption Expenditures, which rising pace eased from 1.6% to 0.9% (consensus of 1.1%) in Q1 (QoQ), and its Core data, that rose from 1.0% to 1.2% as expected. US Reuters/Michigan consumer sentiment is due shortly and is expected to rise from 72.3 to 73.2 in April.
“The USD/JPY currency pair is forming another descending wave. We think, today the price may reach the target of this wave at 97.80 and then start a correction towards the level of 98.70”, wrote Roboforex.com analyst Igor Sayadov, suspecting that later the market may start forming another descending structure with the target at 95.80.