USD/JPY retreats from 150.50 on strong Japan Q2 GDP growth

USD/JPY declined 0.4% to 149.80 during Asian trading, pulling back from yesterday's 150.50 rebound as Japan's Q2 GDP data exceeded expectations. The Japanese economy expanded at an annualized rate of 3.1%, surpassing the 2.1% forecast and marking the strongest growth in three quarters. This robust performance has bolstered expectations for potential Bank of Japan policy normalization, providing fundamental support for the yen. The pair had briefly touched 150.50 yesterday on broader dollar strength but failed to sustain gains above this psychological resistance. Technical indicators suggest immediate support at 149.50, coinciding with the 50-day moving average, while resistance remains firm at 150.50. Traders are closely monitoring upcoming US retail sales data and any signals from the BOJ regarding future rate adjustments, which could determine whether USD/JPY breaks below the 149.00 support zone.