Key events today:

12:30 UTC: USD – Retail Sales Change.

The Japanese Yen (JPY) extends its losing streak against the US Dollar (USD) for the fifth consecutive session following the release of Japan’s Q3 GDP data on Friday. The growth potential for the USD/JPY pair remains supported by a strong US Dollar (USD). Traders are also preparing for the release of US retail sales data for October, expected later on Friday.

Preliminary data on Japan’s Gross Domestic Product (GDP) for the third quarter showed a 0.2% quarterly growth compared to 0.5% in the previous quarter, aligning with market expectations. On an annualized basis, Japan’s Q3 GDP grew by 0.9%, exceeding the market consensus of 0.7% but showing a sharp slowdown compared to the 2.2% growth recorded in the second quarter.

Japanese Finance Minister Katsunobu Kato stated on Friday that he would take appropriate measures against excessive currency fluctuations. Kato emphasized the importance of stable exchange rate movements reflecting economic fundamentals and expressed concern over unilateral sharp market fluctuations.

Meanwhile, Japan’s Economy Minister Ryosei Akazawa indicated that he expects a continuation of moderate economic recovery, driven by rising employment and wages. However, Akazawa also stressed the need to closely monitor potential downside risks to the global economy and volatility in financial and capital markets.

Recommendation: Trade primarily with Buy orders from the current price levels.