USD/JPY flows: Dragged by weaker USD

The USD is trading broadly weaker on Thursday's Asia session despite U.S. Treasury Yields recapture some lost grounds. BOJ's Nakamura says inflation may not reach 2% from FY 2025 on if consumption weakens and highlights the pass-through of wages to inflation remains weak. This comment maybe the painful truth and aligns with our core view of lower wage-inflation translation but in a short to medium run, Japanese CPI could stay afloat at 2% despite of such. 

While 10yr JGB yields continue to drift below 1%, USD/JPY is dragged by weaker dollar to trade 0.33% lower at 155.57.