If GDP is stronger than expected, we will see more dollar appreciation.
The data proved to be as strong as earlier expected, pushing the yen up briefly ... but the yen was later dumped after a modest upturn.
Strong figures will support the dollar, as they suggest a good outlook for the U.S. economy from early next year.
If the U.S. indicators turn out stronger than expected this week, the market will start pricing in a fed funds rate of more than 5 percent. That should be supportive for the dollar.
The dollar will get support from strong economic data, such as the jobs report. The trend of dollar buying will continue for another week.
A strong CPI number would certainly back up many players' expectations for a monetary policy change in April. Considering the high number of yen-short positions, there are risks for yen appreciation in the near term.