USD/JPY aspires to stop its three-day declines

The US GDP exceeded forecasts in the third quarter, with a 5.2% increase compared to the anticipated QoQ print of 5.0%. However, Japan’s retail trade numbers continued to decline. The Fed’s Tom Barkin gave a hawkish demonstration, and Fedspeak is pulling markets in different directions.

The USD/JPY is retreating towards the day’s early bids near 147.50. Japan will release its latest Retail Trade and Large Retailer Sales numbers for October on Thursday.

The US GDP increased more than anticipated in the third quarter, coming in at 5.2%, surpassing the 4.9% growth from the previous quarter. Richmond President of the Fed, Tom Barkin, surprised markets with hawkish remarks that lessened the impact of Fed policymakers’ dovish remarks on Tuesday.

Fed’s Barkin believes that inflation will remain more stubborn than markets are expecting and can’t rule out further rate hikes if price growth continues to plague the US.

Japan’s latest retail sales figures are expected to come in for a landing on Thursday, with Japanese Retail Trade for the year into October finding a slight improvement from 5.8% to 5.9%. The USD/JPY is seeing a slight recovery, but upside momentum is still constrained.

Long-term downward momentum is expected to run aground on the 200-day Simple Moving Average (SMA) close to 142.50, while the pair is expected to see a technical ceiling from the 50-day SMA around the 150.00 major handle.