USDJPY trades near three-month high on Japan GDP, US NFP

The yen retreated to its lowest level versus the U.S. dollar on Monday after a Japanese report indicated slower growth in the final three months of 2014.

Data released from Japan showed a downside revision to the country’s fourth quarter GDP to an annualized 1.5 percent expansion from the preliminary of 2.2 percent growth.  

The recent mixed data from Japan have failed to convince investors the BOJ bold stimulus measures are capable of holding inflation.

The NFP data, on the other hand, came better than forecast to boost the dollar amid the divergence in monetary policy between the Federal Reserve and other major central banks.  

American employers created 295,000 in February, exceeding economists’ forecasts of 240.000 jobs, the NFP figures released on Friday showed.

Investors now believe the Fed may raise interest rates by the middle of this year as recent economic data has showed signs of progress.

The USDJPY pair is currently trading around 121.13 after touching a high of 121.40, noting that the pair rose for a third straight session on Monday.