USD/JPY flows: Q1 GDP Contracts

The Q1 Japan GDP has shown a contraction of 0.2% q/q, slightly worse than our estimate as private consumption shows no growth. What is worth noting is that the data is before the latest Trump's tariff in April, when the Japanese economic growth will be more negatively affected, suggesting a poor Q2. The U.S. and Japan is estimated to resume another round of trade deal negotiation by the  end of month. Japan FM Kato says that he will seek to have a meeting with Bessent, discuss FX and other matters. A second reference to "discuss FX' in a short period of time and keep JPY bids hopeful.

USD/JPY is trading 0.32% lower at 145.16.