USD/JPY flows: Household Spending Strong

The Japan November 2025 Household Spending came in stronger than estimate at +2.9% y/y. While it is generally positive for Japanese economy, the poor wage data released earlier in the week undermined the persistent strength of household spending. China has begun restricting exports of rare earths and rare-earth magnets to Japan, further leveraging their natural resources in the geopolitical playing field.

USD/JPY is trading 0.24% higher at 157.20.