USD/JPY flows: Cash Earning Reach 2% y/y

Japan's labor cash earning finally reached 2% for January. January Cash earnings came in at +2% y/y with expected at +1.3% and prior +0.8%. While real wage remain in negative, the headline growth is good enough in BoJ's eye to be supportive for a sustainable trend inflation. Japan's largest industrial union UA Zensen said that wage hikes negotiated so far has been stronger than last year, so far full-time workers has negotiated for a 6.7% including base pay rise of 5.15%. If such is the scenario, it will be of great support towards BoJ's decision in moving monetary policy away from ultra-loose.

USD/JPY is down more than half a percent by 0.53% to 148.57.