US GDP advanced, weekly unemployment claims rise on Harvey and Irma

Mixed economic releases this morning with the annualized GDP quarter over quarter at 3.1% beating the consensus of 3.0%, but unemployment claims ticked up to 272k above the previous 260k. 

One explanation for this is the effects of Hurricane Harvey and Irma affecting Texas, Florida, and Georgia. The labor market is still expected to remain strong despite the storms affecting the recent claims data.

We can observe this will the price reaction over on the US dollar pairs. I’ll use the USDJPY pair as an example as I have gotten long in this trade following this morning’s release.

usdjpy1
USDJPY 4-Hour

Uptrend game is still strong and I believe the two consecutive bearish bars that haven’t made any drastic price decline remains a good indication that the price is still being held supported. Marking this as a relative low point, I have entered a long trade similar to my previous EURJPY pair, which still remains open by the way. It has not done much overnight, but remains a solid technical play as no Bank of Japan releases are expected.

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