USD/JPY Little Higher

USD/JPY is trading a little higher at 120.23, up 0.26. The Bank of Japan released the quarterly Tankan report Tuesday. Japanese firms see soft overseas demand and domestic demand flat. The report showed big Japanese manufacturers plan to cut capital spending ahead while the labor market is tight. Monthly data from Japan's Automobile Dealers Association showed March sales of new vehicles (engine displacements 660 cc and above ) was down 13.1 percent year-over-year. March was the eighth month in a row of declines. Market Chatter about political officials calling for more BOJ easing has led to some buying of USD/JPY. In Japan, the Ministry of Finance decides the value of the yen; in the U.S., the Executive branch has final say for the dollar.