USD/JPY recedes to 109.50 on USD selling, Japan's Q1 GDP revised higher

• Risk-on weighs over the US dollar, pushes USD/JPY lower. 
• Friday's US jobs report has revived the talk of a V-shaped recovery.
• Japan's first-quarter GDP has been revised higher.

USD/JPY is feeling the pull of gravity during Monday's Asian trading hours largely due to broad-based losses in the US dollar. 

The pair is currently trading near 109.58 at press time, having hit a low of 109.53 soon before press time and a high of 109.69 two hours ago. 

The risk-on mood in the financial markets looks to be weighing over the US dollar, a global reserve, which has treated as a safe haven by markets since the beginning of the coronavirus crisis in early March. While the futures on the S&P 500 are currently up 0.45%, the dollar index, which tracks the value of the greenback against majors, is trading in the red around 96.80. 

The surprise increase in the US jobs in May, as shown by Friday's Nonfarm Payrolls report, has revived the talk of V-shaped economic recovery. As a result, continued equity market rally and deeper declines in the US dollar may be seen over the near term. "A true V-shaped recovery could justify another 5.0-7.6% decline in USD," according to analysts at JP Morgan. 

With investors now focused on prospects of sharp economic recovery, macro data for the first quarter or even second quarter may have little or no influence on exchange rates or markets in general.

Japan's economy shrank an annualized 2.2% in January-March, less than the initial estimate of a 3.4% contraction, revised data from the Cabinet Office showed Monday, according to Reuters. Meanwhile, the Current Account surplus narrowed to JPY 262.7 billion in April from the previous month's JPY 1971 billion. The data, however, failed to influence the JPY pairs. 

Technical levels