Yet, with the underlying sentiment toward the dollar being shaky at the moment, the trade report could shift market attention to deficit problems in the US and spark some dollar selling.

I think the market has almost fully priced in now the likelihood of a shift in policy either in March or April and so there is almost no room for the yen to advance any further on this lead.

The dollar was buoyed as the market confirmed that interest rate differentials between Japan and other major economic countries would not shrink for a while.

Investors normally start making fund allocation from around the Easter Holiday.

The dollar's bearish (weaker) trend is expected to continue unless the GDP figures are significantly stronger (than exported) or the market finds strong signals for further rate hikes in the Fed statement.

Japanese institutional investors as well as mutual funds finally started to buy foreign currency-denominated assets, after having stayed on the sidelines for some time since the start of the new fiscal year.