The USD/JPY pair has broken above the 154.80 resistance level, updating a nine-month high following the release of Japan’s GDP data. According to preliminary estimates, the economy contracted from 0.6% to –0.4% in quarterly terms (better than the –0.6% forecast) and from 2.3% to –1.8% year-on-year, while the GDP deflator eased from 2.9% to 2.8% versus expectations of 3.1%. These figures entered negative territory for the first time in a year and a half, largely due to declining exports under pressure from US trade tariffs. However, analysts note that the overall downturn was not as severe as anticipated and likely represents a temporary slowdown rather than the beginning of a recession. The main drivers of weakness were one-off factors such as a drop in residential investment, influenced by regulatory changes and the lack of a strong catalyst capable of reversing the trend. Markets are now awaiting the launch of a government stimulus package estimated at over JPY 17 trillion (around USD 110 billion). Such large-scale liquidity expansion is expected to weigh on the national currency in the long run, and since early October USD/JPY has already gained 5.17%.