USD/JPY flows: Strong wage gains

The reversal in the market continues in the Asia session on Tuesday. While data is not the market moving part, we have a strong Labor Cash Earning from Japan that came in at +4.5% y/y, a level that will be much appreciated by the BoJ to reinforce their decision in July. Household spending is also seeing some improvement by 1.1% m/m even it is still down 1.4% y/y. All of such is in favor of BoJ's act to further tighten yet its magnitude need to follow through in the coming months.

USD/JPY is trading 0.94% higher at 145.46 with both the U.S. Treasury and JGB yields higher.