USD/JPY jumps above 156.50 after Japanese GDP, eyes on US Retail Sales data

USD/JPY trades in positive territory for the fifth straight day near 156.60 in Friday’s early Asian session. 

Japan’s GDP rose 0.2% QoQ in Q3, as expected.

Fed’s Powell said strong US economic growth will allow the Fed to take its time on rate cuts. 

The USD/JPY pair extends the rally to around 156.60, the highest level since July 23 during the early Asian session on Friday. The upward movement of the pair is bolstered by the firmer US Dollar (USD) broadly. Traders brace for the US October Retail Sales, which is due later on Friday. 

The preliminary Japan’s Gross Domestic Product (GDP) expanded by 0.2% QoQ in the third quarter (Q3) versus 0.5% prior, in line with the market consensus. The country’s GDP Annualized grew 0.9% in Q3, above the market consensus of 0.7%, and slowed sharply from the 2.2% seen in Q2. The Japanese Yen remains weak in an immediate reaction to the GDP report. 

The Bank of Japan (BoJ) Governor Kazuo Ueda warned during the October monetary policy decision that the central bank would scrutinize income data for future policy decisions. The uncertainty surrounding the BoJ rate-hike plans is likely to weigh on the JPY against the Greenback in the near term.  However, the verbal intervention from Japanese authorities might help limit the JPY's losses.