The Japanese economy showed a growth of 2.4% in Q1, above estimates of 1.6%. The Japanese economy grew faster than the US economy in the first quarter this year. That being said, it will be important to see if the second quarter GDP reflects the same positive figure as the first quarter. The Yen has been slow to react to the news as it continued to trade lower against the US Dollar and Sterling. As we move into the New York session it appears the Yen still remains weak. Yen futures on the CME continue to show a decline in open interest from 41k to 37k among large speculators as price continues to fall,suggesting the market is weakening and we could see a potential reversal in the Yen. This will be an interesting currency to watch over the coming days.
The Yen is trading very close to its December highs, currently at ¥187.77 against the Pound.
GBPJPY Daily Chart