USD/JPY flows: Elevated CPI

Japan June National CPI remain above 3%, with headline at 3.3% y/y, ex fresh food also 3.3% while ex fresh food and energy at 3.4%. With such core-core data continue to point higher, the BoJ will have a difficult time shifting the blame to transitory factor. The BoJ is also expected to revise their inflation forecast higher but unlikely to change forward guidance nor rates.

USD/JPY is trading 0.1% lower at 148.45.