The bulls of the Japanese yen have not been significantly affected by the disappointing GDP report for Japan's first quarter. This is largely due to growing expectations that the Bank of Japan will raise interest rates again in 2025. Additionally, hopes for a potential trade agreement between the U.S. and Japan are contributing to the yen's relative strength against the U.S. dollar for the fourth consecutive day.

However, optimism about a trade deal between the U.S. and China is capping demand for the safe-haven yen, helping the USD/JPY pair stay above the psychological level of 145.00. At the same time, the U.S. dollar is struggling to attract significant buyers amid expectations of further interest rate cuts by the Federal Reserve, which are reinforced by Thursday's lackluster U.S. macroeconomic data.

On the other hand, failure to hold above the 145.00 level would expose the pair to deeper losses and shift the outlook in favor of the bears.