Andrey Goilov | Mar 11, 2024 05:46AM ET
The Japanese yen strengthened against the US dollar on Monday, reaching a month-long peak following the release of statistics indicating Japan's return to economic growth in Q4 2023. This development effectively ends the previously declared technical recession.
Japan's GDP experienced a quarterly increase of 0.1% and an annual growth of 0.4%. These figures revise earlier estimates, suggesting 0.1% and 0.4% declines, respectively. In comparison, the Japanese economy contracted by 0.8% quarterly and 3.3% annually in Q3 2023.
The positive economic data have fuelled market speculation about a potential interest rate hike by the Bank of Japan, with some economists and traders anticipating such a move as soon as March.
Bank of Japan board member Junko Nakagawa recently commented on the visible prospects for achieving inflation targets and a positive wage cycle, further supporting the yen.
The Japanese currency is currently benefitting from the weakening US dollar and a drop in US government bond yields amid the Federal Reserve's dovish rhetoric.
Technical analysis of USD/JPY
By RoboForex Analytical Department
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