USD/JPY flows: Japan Business Survey Pessimistic

The Japan Business Survey is showing only 7% business believe wage can catch up with inflation. Some are suggesting small to medium firms may have a hard time trying to hike wage that is on par of inflation. While it is a survey of sentiment, it would not be favorable as BoJ will likely rationalize the next move in tightening by wage driven demand inflation.

USD/JPY is trading 0.06% higher at 158.14 with both the U.S. Treasury and JGB are higher.