USD/JPY flows: JPY Steadily Stronger

The key of JPY movement on Tuesday lies not in the labor data but the threat from Trump on Japan devaluing its currency. Trump's remark on China and Japan's weak currency to be a type of tariffs have seized market participants attention as such would likely trigger more action from him. While we all know his ultimate goal is on narrowing trade deficit, the uncertainty of policy has kept risk asset on check and JPY strengthens.

The JPY continue to strengthen on Tuesday's Asia session and see USD/JPY down 0.44% at 148.83.