The Japanese preliminary Gross Domestic Product for Q1 strengthened (+ 0,4% vs. forecast 0,1%). The GDP grew by 1,7% during the first quarter (on an annual basis). Hopes that the Bank of Japan will soften the monetary policy further significantly decreased amid the improved statistics in Japan and the United States.

  Market managed to obtain drop correction toward 108.20 as we advised before where managed from there to advance toward 109.55 before heading for another drop movement toward 108.45 today.

  The extension of gains on the Japanese stocks further fuelled the risk-on sentiment and boosted the bids for USD/JPY, now pushing the rate closer towards 109 handle.

  Japanese Finance Ministry announced on Monday that the regulator was ready to implement an intervention if the yen sharply grow in price. Previously, many economists doubt the seriousness of the Ministry of Finance of Japan because of America's negative position with respect to direct intervention by the BoJ.

  As we see, market managed to obtain rebound correction toward 106.60 and 107.46.