USD/JPY flows: Strong Japan Q4 GDP

The Japan Q4 GDP has came in higher than estimate at 2.8% y/y with private consumption resumes its expansion. It seems to suggest the higher wage is kicking in and the cumulated demand in the past quarter are being subsequently released. It is good to see consumption recovers but one must be wary about its sustainability as real wage remains negative for most of H2 2024, which may suggest it is the release of pent up demand rather than consumption revival.

USD/JPY is trading 0.3% lower at 151.82.