USD/JPY in tight range as Japan reports record economic contraction

The USD/JPY pair was little changed during the Asian session as investors reacted to the weak GDP data from Japan. The pair is trading at 106.54, which is slightly lower than last week’s high of 107.03. Japan record GDP contraction According to the Cabinet Office, the Japanese economy contracted by 7.8% in the second quarter after dropping by 0.6% in the previous quarter. This decline was worse than the decline of 7.6% that analysts were expecting. Subsequently, the economy weakened by a record 27.8% on an annualised basis. Analysts polled by Reuters were expecting the economy to contract by 27.2%.