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Japan's Wage Growth Slows, BoP Current Account Surplus Shrinks


USD/JPY fell to a four-week low Monday, while BBG pointed to cross-related yen strength which reportedly triggered buy stops against the greenback. The rate ticked away from worst levels over the WMR fix, but remained below neutral levels.

  • Sources told Kyodo that senior Japanese and U.S. officials agreed on PM Kishida's early visit to the U.S. and eye a November date for a summit with Pres Biden.
  • Japan's labour cash earnings grew at a modest rate of 0.2% Y/Y in September, which represented an unexpected deceleration from the previous month. Separately, BoP current account surplus shrank to Y1.0337tn in September from Y1.5030tn. Focus now turns to Eco Watchers Survey, due later today.
  • USD/JPY last operates at Y113.22, little changed on the day. Bears would be pleased by a sell-off past Oct 12 low of Y113.00, which would expose Sep 30 high of Y112.08, a recent breakout level. Conversely, a rebound above Oct 20, 2021/Nov 6, 2017 highs of Y114.70/73 would shift focus to Mar 10, 2017 high of Y115.51.

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