Japanese Cash Earnings Drop Unexpectedly, Yen Fails to Hold Ground

The Japanese yen was attempting to hold ground after the report that showed a drop of wages in Japan. The attempt was succeeding for some time but ultimately failed, and the currency is now trading below the opening level.

Average cash earnings fell 0.3% in July instead of rising 0.5% as analysts had predicted. On a bright side, the previous month’s reading got a revision from a drop by 0.4% to an increase by the same rate. There is a chance that the yen will get support from risk aversion as the theme of North Korea and its nuclear tests did not leave minds of traders entirely.

USD/JPY traded at about 108.86 as of 12:37 GMT today after opening at 108.79 and falling to the daily low of 108.44. EUR/JPY ticked up from 129.62 to 129.91.

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