USD/JPY & US Q3 GDP: A top is already placed?

Today at 12:30 GMT will be released the US GDP Q3 and according to the market’s consensus, we could expect an increase to 2.5% from 1.4%. With the recent hopes fo a possible rate hike by the Fed in December’s meeting, it will be interesting to see which clues can bring us this indicator. During the second quarter, the US economy saw a modest expansion to 1.4%, but it was below the forecast. Let’s see if greenback’s strength will remain alive after the release.

Our technical analysis for USD/JPY at H1 chart is very bullish but overbought. A resistance can be seen at the 105.28 level, where a pullback can happen towards the 104.84 level. Currently, the pair is following a bullish trend line from October 19th low and 200 SMA has been acting well as dynamic support. If data comes above the expectations, then we can expect a cling to the 105.87 level, while a weak data, can produce a pullback to the 104.84 support zone.