USD/JPY flows: Tokyo CPI Rebound Above 2%

The May Japan Tokyo headline y/y CPI has rebounded above 2% to 2.2% from 1.8%, so as ex-fresh food and energy. Ex fresh food y/y CPI stays below 2% at 1.9% but also rebounded from 1.6% in April. While Tokyo CPI likely come in National CPI most of the time, we are forecasting National CPi to also rebound to 2% y/y on accelerating wage growth. 10yr JGB rebounds while U.S. Treasury Yields continue to soften.

USD/JPY is trading 0.02% higher at 156.83.