USD/JPY flows: Labor Cash Earning Improves

The Japan December Labor Cash Earning improves to 2.4% y/y, November number is also revised higher to 1.7% from 0.5%. Real wage will be edging closer to positive territory again as CPI moderates. It will be favorable for the BoJ to see. More importantly, the results of the Lower House election shows the LDP a landslide victory, capturing the super majority with coalition partner. The opposition party's seats are cut half. 

USD/JPY initially opened higher with speculators following the rhetoric of fiscal worries but soon turned lower as verbal intervention surface from the Japan FM. USD/JPY is now trading 0.23% lower at 156.81 after opening almost 40pips higher than Friday's close.