USD/JPY flows: Solid Import Suggest Improving Consumption

The July Japan trade data shows positive signs for the Japanese economy. While export only grew at 10.3% y/y, import jumped to 16.6% y/y in July. It would be welcoming for the BoJ as consumption has been a huge drag towards Japanese economics growth in the past two quarters. The potential candidate for Japan PM, Katsunobu Kato, has remark supporting BOJ's continue rate hike but has little impact in the market as BoJ's stance in the latest meeting is already hawkish.

USD/JPY is trading 0.25% higher on broad USD strength for U.S. Treasury Yields outperform JGB yields.