Though Japan published a moderate positive macroeconomic data the traders' sentiment was marred by the Chinese statistics. Japan's GDP for the 4th quarter was revised from -0.4% to -0.3% in the final assessment. There was -1.1% versus the previous -1.4% in the annual assessment. Capital expenditures in GDP increased from 1.4% to 1.5%. Consumer spending showed weak results, the index showed a decline by 0.9% against the forecast of -0.8%.
The first support resides at 112.20, the next is at 111.40. The first resistance stands at 113.00, the next one is at 113.80.
There is a confirmed and a weak sell signal. The price is below the Ichimoku Cloud. The Tenkan-sen and the Kijun-sen show a horizontal movement. The downward movement will be until the price is below the Cloud.
The MACD indicator is in a negative territory. The price is decreasing.
We remain bullish on the pair. Our first target is 112.20. Our second target is the level of 111.40.