FxWirePro: USD/JPY hovers around 104 handle, upbeat Japan Q3 GDP and weak market sentiment keep the pair suppressed

USD/JPY chart - Trading View 

USD/JPY remained in the red due to Wall Street´s poor performance. US Treasury yields fell, reflecting the dismal market’s mood, keeping the pair under pressure.

The major was trading largely muted at around 104 handle at 05:20 GMT, upside remains capped at 21-EMA.

Data released earlier today showed Japan's third quarter GDP was revised up to annualised 22.9% growth, up from an initial estimate of a 21.4%, beating economists’ forecast for 21.5%.

Further, Japan's preliminary estimate of the October Leading Economic Index came in at 93.8, better than the previous 93.3. The Coincident Index printed at 89.7, improving from an upwardly revised 84.8. 

Japan's Economy Minister Nishimura said on Tuesday that while Japan's consumer spending is recovering, the economy hasn't yet recovered to pre-coronavirus pandemic levels.

He added that capital spending by both manufacturers and non-manufacturers remains weak because of worsening corporate earnings amid the pandemic.

Major bias for the pair remains bearish. Recovery attempts capped at 21-EMA, scope for downside resumption. 

Immediate support lies at 103.45 (trendline). Breach at trendline support will see weakness till 101.75. Bearish invalidation only above 21-EMA.