USD/JPY sticks to modest gains, above mid-109.00s post-US GDP

   •  US Q1 GDP growth revised down to 3.1%, in line with estimates.
   •  Improving risk sentiment/rebounding bond yields remain supportive.

The USD/JPY pair held on to its mildly positive tone around the 109.65-70 region and had a rather muted reaction to a downward revision of the US GDP print.

According to the second estimate, the US economic growth during the January-March quarter stood at 3.1% annualized pace, down from 3.2% estimated previously but was in line with consensus estimates and hence, did little to provide any meaningful impetus.

Meanwhile, the US Dollar extended its subdued trading action, albeit signs of stability in the global financial markets undermined the Japanese Yen's safe-haven status, which coupled with a solid bounce in the US Treasury bond yields remained supportive.

It, however, remains to be seen if the pair is able to capitalize on the latest leg of a positive move or the uptick witnessed over the past 24-hours or so turns out to be a corrective bounce amid fears of a further escalation in the US-China trade tensions.

Technical levels to watch