USD/JPY flows: Preliminary GDP Deep in the Red

The  annualized preliminary Q1 GDP has come deep in contraction for Japan at -2%, 0.5% q/q. The details are also disappointing with CAPEX, export, domestic and external demand all showing contraction. The pint of salt would be it is a preliminary report when we had the previous preliminary GDP report also in contraction was revised to expansion. Thus, market seems to have overlooked this weak GDP data and let USD take the driving seat.

USD/JPY is trading 0.65% lower at 153.87 with JGB and U.S. Treasury Yields both lower.