Global macro overview for 29/05/2017:

The Preliminary GDP data from the US surprised market participants. The US Commerce Department reported the first-quarter GDP was revised up to 1.2% instead of the 0.7% pace reported last month, while market participants expected only a 0.9% increase. A non-defense capital goods orders excluding aircraft, which are strongly related to business spending plans, were unchanged in April for the second month in a row. Growth in consumer spending, which accounts for 70% of the US economic activity, rose at a 0.6% rate instead of the previously reported 0.3% pace, which was the slowest pace since the fourth quarter of 2009. In conclusion, President Donald Trump's ambitious plan to sharply boost economic growth to the level of 4.0% is still not materializing. Despite good figures in the first quarter, the softening business investment and moderate consumer spending are limiting down the expectations of a possible sharp acceleration in the second quarter. The consequences for the US Dollar will include a possible further deterioration when more of the second quarter data will be available.

Let's now take a look at the USD/JPY technical picture on the H4 time frame. The price has broken out of the wedge and it is currently trading around the 200 periods moving average. The next support is seen at the level of 110.85 and the next resistance is seen at the level of 111.44.