U.S. GDP, Initial Jobless Claims and Core PCE.

U.S. GDP, Initial Jobless Claims and Core PCE.

The PCE will not matter this time so we can be focused on the GDP and the job market. The GDP annualized is expected to come out at 0.9%. I would be looking to trade a deviation of 0.4.

BUY
If it comes out at 1.3% or higher, buy USD/JPY and look for 40 pips move.

SELL
If it comes out at 0.5% or lower, sell USD/JPY and look for 40 pips move as well.

LOOK OUT
However, a lot of people don't trust the GDP number saying that the U.S. government is "manufacturing" the numbers to eliminate the panic on the market. We will have U.S. Initial Jobless Claims coming out at the same time. This can provide some confusion on the price action. Lately, we did not see huge deviations on this report.

What I would do is use the Initial Jobless Claims report as a back up data so if the GDP comes out pretty close to expectations but the Initial Jobless Claims deviates in the same way, then enter a trade as well.
If it comes out at 390 K or higher, it should be bad for the U.S. dollar and you should see some selling pressure. If it comes out at 350 K or lower, you should see some positive pressure on the USD/JPY.

NOTE
However, people will care more about the GDP than the Initial Jobless Claims.