Release Explanation: This release measures the change in the prices that businesses and governments pay for labor. Although, this report does not take into account all sources of household income but the labor cash earnings does accurately reflects the spending ability of domestic, which is one of the driving forces of economic growth.
Trade Desk Thoughts: The Japanese cash earnings decreased in January by 1.3 percent, this was after a 1.2 percent drop seen during December. Overtime hours fell by 40 percent while overtime pay dropped 14.8 percent. Overtime pay fell at its fastest pace ever as exports declined which prompted employers such as Toyota and Sony to cut hours and halt factory production lines.
Forex Technical Reaction: The yen seen both weakness and strength so far in the new trading week. The pair initially fell 70 pips, only to gain it all back. Currently the pair is trading near the neutral pivot point which it is using as support.