Japanese GDP unexpectedly contracted in Q4 of last year. Shrinking 0.1% q/q after a -0.8% contraction in Q3 puts the island in a technical recession. Net exports’ contribution was insufficient to make up for weak business spending and private consumption. Waning demand complicates the picture for the Bank of Japan which is looking to exit its ultra-easy monetary policy. While today’s data doesn’t derail those plans per se, it does suggest the window of opportunity may be closing. The Japanese yen advances this morning but that has more to do with intervention speculation after USD/JPY topped the 150 barrier two days ago. The pair is still hovering north of that level as of this morning.