Market Analysis: Will US GDP data push the USD/JPY pair back above 114 on Wednesday?

The main reason for the small up-gap in the USD/JPY currency pair recently was a potential risk on mode within the financial markets after the Brexit summit over the last weekend delivered the first step to a deal between the EU and UK, even though prime minister May still has to convince her parliament on the 11th of December. On Wednesday the question is now whether USD/JPY can keep its current upside momentum and probably attack and re-conquer the region around 114.00 JPY. In this context the main focus lies on the data for the US economic growth rate for the third quarter of 2018. Numbers for the first estimate came in at an annualized 3.5 percent on quarter, beating market expectations of 3.3 percent.

Source: Economic Events 28 November 2018 - Admiral Markets' Forex Calendar

If numbers for the second estimate today confirm the numbers back then, a following push higher in 10-year US-yields will most likely, due to the positive correlation between US yields and USD/JPY, push the currency pair with a first target around 114.00. But even if the data disappoints and USD/JPY goes for a re-test of Fridays' closing price back below 113.00, the picture remains positive on a 4-hour-chart, as long as we trade above 112.70, though some more optimistic traders will probably extend this down to 112.30, the current November lows.

Source: Admiral Markets MT5 with MT5SE Add-on USDJPY 4-Hour chart (between 27 September 2018 to 27 November 2018). Accessed: 27 November 2018 at 11:00 PM GMT

Disclaimer: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter "Analysis") published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:

1. The analysis is published for informative purposes only and are in no way to be construed as investment advice or recommendation.
2. Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the Analysis.
3. Each of the Analysis is prepared by an independent analyst (hereinafter "Author") based on the Author's personal estimations.
4. To ensure that the interests of the clients would be protected and objectivity of the Analysis would not be damaged Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
5. Whilst every reasonable effort is taken to ensure that all sources of the Analysis are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis. The presented figures refer that refer to any past performance is not a reliable indicator of future results.
6. The contents of the Analysis should not be construed as an express or implied promise, guarantee or implication by Admiral Markets that the client shall profit from the strategies therein or that losses in connection therewith may or shall be limited.
7. Any kind of previous or modeled performance of financial instruments indicated within the Publication should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
8. The projections included in the Analysis may be subject to additional fees, taxes or other charges, depending on the subject of the Publication. The price list applicable to the services provided by Admiral Markets is publicly available from the website of Admiral Markets.