USD/JPY: Upside risk to wages supports the increasing trend in private demand – BBH

USD/JPY is drifting lower on broad USD weakness, BBH FX analysts report. 

USD broad weakness pushed USD/JPY down

"Japan’s final Q4 real GDP print was revised 0.1pts lower to 0.6% q/q on weaker private demand activity. Private demand fell -0.3% q/q in Q4 compared to a preliminary estimate of -0.1%. The sharper decline was driven by residential investment which dropped -0.2% q/q from an initial read of 0.1%." 

"Household consumption was flat from an initial estimate of 0.1% while non-residential investment rose 0.6% q/q from an initial estimate of 0.5%. Going forward, upside risk to wage growth supports the moderate increasing trend in private demand."