The USD/JPY pair has paused its ascent and initiated a correction.
The Japanese yen, when paired with the US dollar, has momentarily halted its devaluation. The current exchange rate for USD/JPY is at 146.45.
The downward pressure from the US dollar has temporarily subsided, allowing the JPY to regain some stability.
Friday's economic data from Japan painted a somewhat grim picture. In August, average wages only increased by 1.3% y/y, falling short of the anticipated 2.3% rise. While this may signal a measure of control against inflation, it also hints at a less optimistic employment sector.
Japan's final GDP figures for Q2 2023 showed a 1.2% q/q increase, slightly below the projected 1.4% and the earlier estimate of 1.5%. This relative economic weakness can be attributed to declining export metrics.
In August, the Japanese Economy Watchers Survey index dipped to 53.6 points from the previous 54.4 points. The forecast had anticipated no change in the index.
This week, Japan is not expected to release any significant economic statistics.