Japan GDP

An official report showed that a Japanese economy grew at an annual pace of 4.8% in this past forth quater. A consumer spending got back from a slump in the third quater, which should be a good news for BOJ to hike rates next week.
Government officials read this data as the jump in the cosumer spending is due to "a rebound from the previous quater decline" and look at the cosumer spending still weak. I personally do not take this comment siriously because our gorvernment official has always been pretty much pessimistic on our domestic economy.
Japanese economy performed well in the forth quater of 2006. This is definately positive for Yen, and I can expect Yen-Short corrections. Today's market reaction, reached at 119.85 from 120.80 late in NY, showed us that a market needs a good correction of Yen across the board. Since I am standing at in favor of USD bull, USDJPY might not decline as fast and deep as a market expects meanwhile other crosses decline sharply. For the USDJPY, a current level of 120 is always a big resistance in either directions.