USD/JPY extended its decline as stronger 4Q GDP print (2.8% QoQ, saar) solidified expectations for another BoJ hike to be in due course. USD/JPY was last seen at 151.71 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Slight risks to the downside in the interim

"There were also chatters of a 8% increase in wages for large Japanese bank, adding to the list that a handful of Japanese corporates are likely to see another year of wage increases, meeting one of BoJ’s pre-requisites for policy normalisation."

"Daily momentum is flat while RSI fell. Consolidation likely, with slight risks to the downside in the interim. Support at 151.50 (38.2% fibo retracement of Sep low to Jan high), 150 levels. Resistance at 152.70 (200 DMA), 153.40 (100 DMA) and 154.30 levels."

"Elsewhere, tariff concerns remain but it appears that Japan is attempting to seek exemptions with regards to Trump’s proposed reciprocal tariffs. Ministry of Foreign Affairs Takeshi Iwaya also raised the issue of automobile tariffs and sought exclusion from the 25% tariff on imported steel and aluminium products at the Munich Security Conference last Fri."