USD/JPY flows: Ueda Copy and Paste Remark Reverese JPY stregnth

We are seeing a back and forth action in JPY on Friday as Ueda said he need to see the outcome of wage negotiations currently taking place for confirmation of a positive wage-inflation cycle after Takata's comment on Thursday. While it seems like Ueda walked back on Takata's remark in terms of inflation dynamics, it does not change the fact that the spring wage negotiation remain the number one factor in determining the pace of changing monetary policy. We believe Ueda's remark is rather a copy-paste speech than a disagreement with monetary policy change. In fact, one of the key points Takata mentioned on Thursday, is positive signs from major companies wage hike, which should see trend inflation achieving target.

USD/JPY rose on Ueda's remark to trade 0.32% higher at 150.45, almost reversing the Thursday's losses.