Global macro overview for 16/08/2016:
The Japanese Nominal Gross Domestic Product slowed down in April-June period according to the data released yesterday. On a quarterly basis, GDP advanced 0.2%, which was in line with expectations, but way below the 0.8% q/q increase for the last three months of the year. On an annualized basis, GDP advanced again only 0.2%, slowing down dramatically from 2.0%. Moreover, consumer demand, which accounts for for nearly two-thirds of business activity, added only 0.2%. The main reason behind the poor data was weak exports and capital expenditure. In conclusion, this data put again more pressure on premier Shinzo Abe to add or increase the stimulus program in order to bolster bigger economic growth.
Let's now take a look at the USD/JPY technical picture in the daily time frame. The bear camp is clearly heading to test the important daily technical support at the level of 99.04 and the bearish outlook is being confirmed by the fact, that the price is trading below 55, 100, and 200 DMA. The next resistance is seen at the level of 100.65.
