FxWirePro: USD/JPY extends channel breakout, hits fresh 7-week highs, near-term outlook bullish above 104.57

USD/JPY chart - Trading View 

USD/JPY spikes higher for the 3rd straight session, hits fresh 7-week highs as channel breakout buoys bulls. 

The major was trading 0.27% higher on the day at 104.47 at around 04:00 GMT, after closing 0.10% higher in the previous session.

Upbeat data from Japan failed to support the yen. Widening US/Japan rate differential weighs on the yen.

Japan Industrial Production, the Unemployment Rate and the Tokyo Consumer Price Index, all beat expectations, but JPY unimpressed.

In the U.S. docket, first estimate on U.S. fourth-quarter gross domestic product (GDP) released by the Commerce Department on Thursday showed economic activity slowed significantly from the third quarter’s 33.4% annualized increase to 4.0%, missing estimates at 4.2%.

For the full year, U.S. GDP contracted at a 3.5% annualized rate. This marked the first contraction in economic activity since 2009, and the biggest drop since 1946.

And also on Thursday, the Labor Department’s weekly jobless claims showed 847,000 Americans filed for first-time unemployment benefits last week.

Technical indicators have turned bullish on the intraday charts. Channel breakout buoys bulls in the pair. USD/JPY is on track for further gains.

Immediate resistance is seen at 110-EMA at 104.57. Break above eyes 23.6% Fib at 104.74, 105 and 200-DMA at 105.64. Retrace below channel top and 55-EMA support will negate any further upside.