USD/JPY flows: Labor Cash Earning Moved Above 2%

After a disappointing March wage data, the April Labor Cash Earning is seeing a growth of more than 2% and is beloved by the BoJ to support their next step in entering positive rates. Ueda has mentioned in previous interviews that a 2% wage growth would feed into trend inflation, achieving BoJ's inflation target. If we continue to see above 2% wage hikes, there would higher chance of the BoJ hiking rates. U.S. Treasury Yields are higher across the curve while 10yr JGB  yields fell below 1%.

USD/JPY is trading 0.37% higher at 155.41.