Japanese yen continued to strengthen during Asia and New York session on Tuesday as economic data showed that Japan’s economy grows faster than expected in the first quarter of 2016, helped by positive revision on private consumption and business investment. GDP grow 1.9% annualized in first quarter, rose from previous estimation at 1.7%, according to data from Cabinet Office on Wednesday. 

The positive revision possibly will give more space for Prime Minister Shinzo Abe, who experienced difficulties to revitalize Japan’s economy and decided to postpone the tax rise.

Technically, USD/JPY remains in bearish bias for intraday outlook. Today’s bearish target is still at 106.359. Remember that it is intraday key support and if it breaks, we possibly will see deeper bearish move to 105.637-105.031.
Hourly stochastic and CCI are oversold again. As alternative strategy, watch for bearish signal confirmation on a pull-back move to within Fibonacci resistance area at 107.373-108.000 with 109.986 as target and 106.359 in extension.
Still, be careful if the price managed to break resistance 108.000 because it will turn the intraday bias to bullish and possibly will be followed by bullish move up to 108.446-109.014.

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