USD/JPY flows: Labor Cash Earning Slows From July

The Japan August labor cash earning came in at 1.5% y/y, slowing from the sub 3% growth in July. While the drag seems to be mostly base effect of one time special payment, it indicates the price/wage dynamics only continue to transit gradually.

The one way traffic continues in USD/JPY as the diminishing anticipation of rate hikes cut the legs off JPY. USD/JPY is trading 0.26% higher at 152.28.