The Japanese Yen spikes and unwinds on the best pay data in decades
USD/JPY holds just below 154.50 on Tuesday, unchanged on the day after a 153-pip round trip. The pair traded well over a Yen lower on the strongest Japanese pay data since 1997 and has bought back all of it.
On Tuesday, the USD/JPY currency pair held just below 154.50, unchanged from the previous day after a 153-pip round trip. The pair climbed back up after strong Japanese pay data in July, which surpassed the best since 1997. Nominal cash earnings rose 4.7% in July, faster than expected, and base pay increased by 4.1%. Real wages grew by 2.4%, marking the best performance in five years.
The largest federation's pay count hit 5.01%, indicating a third consecutive year above 5%. The revised second-quarter figures showed annualized growth of 1.4%, and the deflator remained steady at 2.6%. Bonuses increased by 6.3%, while overtime slowed to 3.1%. Private consumption remained unchanged in the quarter. However, the Yen's value fell to a five-year low of 154.00, and the market was left to determine its next steps.
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