FxWirePro: USD/JPY grinds higher for the 3rd straight session, upbeat US GDP and Jobless Claims data supports gains

USD/JPY chart - Trading View 

USD/JPY was trading 0.05% higher on the day at 109.22 at around 05:45 GMT, after closing 0.42% higher in the previous session.

The pair is refreshing weekly highs as price is extending gains for the 3rd straight session, outlook is bullish.

Markets cheer upbeat US GDP and Jobless Claims figures as well as comments from San Francisco Fed President Mary C. Daly that favors the need for further stimulus and rejects the taper tantrums. 

Data from the US Bureau of Economic Analysis showed the real GDP grew at an annual rate of 4.3% in Q4, beating market expectation and the previous estimate of 4.1%. 

Further, the weekly report published by the US Department of Labor revealed that Initial Jobless Claims dropped to 684,000, the lowest reading since the pandemic started. 

Price action is extending gains above 55-month EMA and is attempting break above 200-week MA after finding rejection for the previous 3-weeks.

Volatility is high and 'Golden Cross' (bullish 50-DMA crossover on 200-DMA) keeps bias bullish. Upside resumption likely, scope for test of 88.6% Fib at 110.67.