The Japanese yen rose in Asian trade on Monday against a basket of major rivals, recovering from a week low against the dollar on haven demand ahead of a new round of trade talks between the US and China.

Recent Tokyo data showed the Japanese GDP grew better than expected in the first quarter of the year, bolstering the odds of an interest rate hike in June.

The Price

The USD/JPY price fell 0.3% today to 144.34, with a session-high at 144.95.

The yen lost 0.9% against the dollar on Friday, plumbing a week low at 145.09 following strong US payrolls data.

The yen also lost 0.55% overall last week against the dollar, the second weekly loss in A row.

London Trade Talks

Later today in London, The US and China will conduct new trade talks following the crucial Trump-Xi trade talk last week, which helped accelerate the momentum of negotiations between both sides.

Japans GDP

Japans GDP was unchanged in the first quarter of the year, beating estimates of a 0.2% contraction.

Following the data, the odds of a Bank of Japan 0.25% interest rate hike in June rose from 40% to 45%.

Bank of Japan Deputy Governor Shinichi Uchida said the bank will continue to raise interest rates if the economy recovers from the negative impact of US tariffs, however he still cautioned that the economic outlook remains highly uncertain.

Now traders await more Japanese data on inflation, unemployment, and wages to gather additional clues.