FxWirePro: USD/JPY advances as strong dollar outweighs Japan GDP beat

• USD/JPY advanced towards 159.00 level on Tuesday  as stronger  dollar offset  stronger-than-expected Japan's Q1 GDP data.
    
• Japan’s economy expanded faster than expected in Q1, supported by strong exports and steady consumer spending, data showed.

• Japan’s real GDP grew at an annualised 2.1% in the first quarter, data showed on Tuesday, beating the median forecast of 1.7% and improving from a revised 0.8% expansion in the October–December quarter.

• The world’s fourth-largest economy expanded for a second straight quarter, supported by strong exports, with net external demand contributing 0.3 percentage point to growth, data showed.

• The data will be closely watched by the Bank of Japan as it evaluates whether the economy can withstand the energy shock and consider raising interest rates as soon as next month.
 
•  Immediate resistance is located at 159.09 (38.2%fib), any close above will push the pair towards 159.87(April 23rd high).

•  Support is seen at 158.24 (SMA 20) and break below could take the pair towards 157.77(50%fib).

Recommendation: Good to buy around 158.70, with stop loss of 158.20 and target price of 159.50