USD/JPY has a close look at 153 after Japanese wage increase surprises markets

Yesterday an update here on the USD/JPY noted that 154-156 probably had the price action covered for the time being. Well, earlier today the dollar took out the bottom end of that range and as you can see, the breakdown delivered an extension to the downside. The USD/JPY fell to 153.10 earlier this morning. It has rebounded off that low since, but now below the 154 handle the outlook for the dollar is rather more uncertain. The catalyst for the move lower in the dollar was a jump in the latest Japanese wage data. That showed annualised wages rising by 4.8%, where the markets were expecting a rise of around 3.7%. The previous reading was also revised nearly a percent higher. The USD/JPY is currently trading at 153.45