FxWirePro: USD/JPY hovers above 105 handle, Prime Minister Yoshihide Suga's comment keeps downward pressure on yen

USD/JPY chart - Trading View 

USD/JPY was trading 0.12% higher on the day at 105.04 at around 04:40 GMT, edging slightly lower from session highs at 105.14.

The Japanese yen remains under downward pressure after unexpected comments from Prime Minister Yoshihide Suga. 

PM Suga said that he is closely watching the forex moves. The statement surprised markets as the yen has been weakening for the 4th straight session.

On the data front, Japan Q4 GDP rose 3% QoQ, missing expectations at 2.3% and below 5.3% seen in the third quarter.

Earlier in the day, Japan Economic Minister Yasutoshi Nishimura said that the fourth quarter GDP demonstrates the economy's recovery potential.

Technical bias for the pair is turning bullish. Rejection at 200-DMA in last week's trade has held support at 21-EMA.

The pair is now on track to retest 200-DMA resistance at 105.54. Decisive break above will see further upside.

On the flipside, 21-EMA is major support at 104.56. Retrace below will see significant downside.