Global macro overview for 30/05/2016:
The second GDP data from the USA was released last Friday and it looks like the US economy slowed down in the second quarter, but less than anticipated. According to the Commerce Department, the estimated GDP was in line with expectations of 0.8% and better than 0.5% in the last quarter. Nevertheless, the indicator has been at its lowest level since the first quarter of 2015 due to strong US dollar and weak global demand. Even surge in spending on home building in the last quarter did not really help to improve GDP. In conclusion, this was a good and promising report, so the next GDP release might get even better figures as data on retail sales, goods export, industrial production, and house sales showed a rise in April.
Let's now take a look at the USD/JPY technical picture in the daily time frame. An important bullish breakout higher above the golden trend line is the first indicator of a bullish strength. The rally might not last long, but so far the next resistance is seen at the levels of 111.99 and 115.97.
