FXstreet.com (Barcelona) - Dollar has continued its decline against the Yen today's Friday session despite disappointed Japanese GDP data. USD/JPY has fallen around 75 pips from intra-day high at 91.77 in the early Asian session to trade below 91.00 level and post 90.98 as lowest level since February 13.
Currently the pair is trading around 0.60% below opening price action at 91.74 to the actual 91.15.
Richard Lee, analyst at Online Forex Trading, ask him about the Yen buying momentum: Since hitting a 101.50 low back in March, the Japanese Yen has rallied sharply over the last five months against the U.S. dollar. Now trading just a haircut above 91.00, some in the market are questioning whether there is more gasoline in the tank for the currency to move further in the coming months.
Fundamentals point to a resounding yes following tonight's economic growth figures. Expected to have been in recovery mode since before August, it seems that facts have surfaced negating the optimism previously hoped for.
Lee concludes: During the campaign, the DPJ party continued to make promises of further economic stimulus through cash handouts and infrastructure spending to boost general consumption without the heavy hand of debt issuance. If the reigning party is able to revive the country's outlook, it may be just enough to curtail any further USDJPY shorting as risk momentum on growth expectations continue.