Sasha Singh
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Why USDJPY strengthening even after weak data?

Seems like Emerging Markets continue to weigh on the risk appetite for investors. Many emerging markets have benefited over the past few years as Fed and other central banks have pumped money into the global economy. However investors are now pulling out of the emerging markets because Fed begun to scale back its bond buying program. Higher rates in US and a stronger dollar will make emerging market investment less attractive. USDJPY surged today against JPY even after the weak GDP data. According to the data U.S. economy expanded 3.2% in fourth quarter compared to a 4.1% increase in third quarter. Whereas another report showed that the unemployment claims increased by 19000 to 348000 which economists were expecting to increase by 2000 to 331000. Does it shows that USDJPY could again come back to its multi-year highs level no matter how is the data? On the 1 hour chart of USDJPY we can see a wedge within which the pair will trade and could break the resistance trend line once it will reach near the apex of the wedge.