FxWirePro: USD/JPY gains as yen weakens on soft Japan’s Q4 GDP data

 • USD/JPY strengthened on Monday as the yen weakened after Japan’s fourth-quarter 2025 economic growth came   below expectations.

• Growth in Japan remained subdued in the fourth quarter and came in well below expectations, posing a significant test for Prime Minister Sanae Takaichi amid persistent cost-of-living pressures.

• Government data showed gross domestic product in the world’s fourth-largest economy rose at an annualised rate of 0.2% in the October–December quarter, falling well below the median forecast of a 1.6% increase.

• The latest GDP data is unlikely to alter Bank of Japan policy, but markets remain focused on whether Prime Minister Sanae Takaichi will push to keep interest rates low following her historic election win.

• The Bank of Japan is set to meet in March, with markets pricing in a 20% chance of a rate hike.

• Immediate resistance is located at 154.53(50%fib), any close above will push the pair towards 155.18(SMA 20).

•  Support is seen at 152.17(61.8%fib) and break below could take the pair towards 151.18(Lower BB)

Recommendation: Good to buy  around 153.10, with stop loss of 152. 50 and target price of 153.70