The Japanese Yen is strengthened in reaction to the upward revision of the GDP number of the first quarter of Japan

• The Japanese Yen attracts new buyers on Monday and breaks a two -day loss streak.
• An upward review of the Japan Q1 reaffirms the bets for an increase in boxwood rates and power to the JPY.
• The emergence of sales of USD exerts additional pressure on the USD/JPY.

The Japanese Yen (JPY) advances at the beginning of a new week in reaction to an upward review of the GDP printing of Japan Q1. This adds to signs of expanding inflation in Japan and reaffirms the bets that the Bank of Japan (BOJ) will continue to increase interest rates, which, in turn, provides a slight impulse to the JPY. In addition, a slight drop in the US dollar (USD) exerts some downward pressure on the USD/JPY torque during the Asian session.

The JPY, for now, seems to have broken a two -day loss streak in front of its US counterpart, although the operators could refrain from opening aggressive directional bets before the important commercial conversations between the US and China in London. In addition, employment data in the United States as expected published on Friday discouraged the hopes of imminent cuts of interest rates by the Federal Reserve (Fed) this year, which could act as a tail wind for the USD and limit the losses of the USD/JPY torque.

The Japanese Yen Alcistas regain control thanks to the best impression of the GDP of Japan Q1

• The Japan cabinet office reported earlier this Monday that the economy did not register growth during the first quarter of 2025, compared to the contraction of 0.2% initially estimated. The reviewed data also revealed that the economy of Japan contracted at a slower pace, of 0.2% annualized during the month reported, compared to the contraction of 0.7% initially reported.
• Additional details showed that private consumption, which represents more than half of the Japanese economy, increased 0.1% during the period from January to March compared to a flat preliminary reading. This gives the Bank of Japan margin to increase interest rates even more this year and provide a slight impulse to the Japanese Yen at the beginning of a new week.
• The US dollar, on the other hand, struggles to capitalize on Friday’s upward movement, led by the best Non -Agricultural Payroll (NFP) report of the US crucial US employment data.
• Other details of the report showed that the unemployment rate remained stable at 4.2%, as anticipated. In addition, the average income per hour remained unchanged at 3.9%, exceeding consensus estimates of 3.7%. This reinforced the expectations that the Federal Reserve would maintain the stable interest rates at its next meeting and enhanced USD.
• Senior US officials and China will meet in London on Monday for negotiations aimed at deactivating the high -risk commercial dispute between the two largest economies in the world. The president of the United States, Donald Trump, said last week that a call with Chinese leader Xi Jinping was almost completely focused on trade and resulted in a very positive conclusion.
• In the geopolitical front, the Russian forces launched mass attacks on the second largest city in Ukraine, Járkov, with drones, missiles and guided bombs. In addition, Russia said that a tanks division has reached the western border of Donetsk and continues its progress, pointing out a serious scaling in the conflict in the midst of stagnant peace conversations.

The USD/JPY could attract buyers in the fall near the rupture point of the negotiation range, around the 144.00 brand

From a technical perspective, Friday’s break through a several -day negotiation range was seen as a key trigger for USD/JPY bulls. However, neutral oscillators in the daily chart make prudent wait for purchases beyond the 145.00 psychological brand, or a maximum of a week reached last Friday, before positioning themselves for more profits. Cash prices could then climb to the horizontal barrier of 145.55-145.60 en route to the round figure of 146.00 and the maximum of May 29, around the region of 146.25-146.30.

On the other hand, the resistance rupture of the negotiation range, around the round figure of 144.00, now seems to protect the immediate fall. However, a convincing rupture below could cause some technical sales and drag to the USD/JPY torque to the 143.50-143.40 area on the route to the 143.00 mark and the following relevant support near the horizontal zone of 142.70-142.65. The latter should act as a pivotal point, which, if it breaks decisively, will establish the scenario for the resumption of the recent fall from the monthly May.