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Forex - USD/JPY jumps following Japanese GDP data

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Investing.com - The U.S. dollar soared to its highest levels in nearly four years against the Japanese yen during Friday's Asian session following a strong revision to Japan's fourth-quarter GDP report.

In Asian trading Friday, USD/JPY surged 0.49% to 95.30, soaring past resistance at 95.29, the high from Aug. 18, 2009. The pair was likely to find support at 92.92, Tuesday's low.

Earlier today, a report showed that Japan's GDP rose 0.2% in the fourth quarter following an initial reading that showed a contraction of 0.4%.

On Thursday, the Bank of Japan, gave a somewhat rosy assessment of the world's third-largest economy, saying exports have stopped declining while increased government and real estate are helping boost the economy. BoJ announced no material monetary policy changes at the conclusion of its two-day meeting yesterday.

BoJ left unchanged its JPY76 trillion asset purchasing-program at Governor Masaaki Shirakawa's final meeting before incoming governor Haruhiko Kuroda takes over next month.

Even with the solid fourth-quarter GDP revision, it is unlikely Prime Minister Shinzo Abe will step back from his strong desires for higher inflation and a weaker yen. Kuroda, picked in large part because he agrees with Abe's views on those subjects, could move to introduce new stimulus and easing measures as soon as the first BoJ meeting with him at the helm wraps up early next month.

Elsewhere, Deputy Governor Kiyohiko Nishimura said BoJ could lose JPY2.3 trillion if long-term interest rates climb 100 basis points or 1%. Nishimura made the comments before Japan's parliament on Thursday.

Meanwhile, EUR/JPY advanced 0.35% to 124.76 while GBP/JPY added 0.41% to 142.98. AUD/JPY rose 0.22% to 97.60.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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