Japan FM says prepared to take decisive action on speculative FX moves
Japan May headline inflation 1.5% y/y
As USD/JPY quickly jumped by a figure on Thursday, we are hearing jawboning from Japanese FM "prepared to take decisive action on speculative FX moves". The FM also suggest the government won't rely on debt to fund food sales tax cut, an act trying to calm market sentiment. On the other hand, May headline inflation stays below 2% at 1.5% y/y. We all know it is driven lower by stimulus and base effect, but the slow consumption cannot be neglected.
USD/JPY is trading 0.16% lower at 161.12.