Japan's annualized Labor Cash Earnings and Overall Household Spending came in below market forecasts for the year ended in December, with labor earnings growing by 1% versus the forecast 1.3% and seeing scant wage growth over the previous period's 0.7% which saw a sharp upside revision from 0.2%.

Overall Household Spending for the year through December declined 2.5%, missing the market's expected -2.1% and seeing only a meager recovery from the previous period's -2.9%.

Market reaction

USD/JPY is trading near 148.60 heading into the early Tuesday market session as the pair remains bid into the high side after last week's late rally above the 148.00 handle