Published: 2024-07-26T04:08:00.000Z
USD/JPY flows: Tokyo CPI Moderates
FX Analyst
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Tokyo July Headline CPI 2.2% y/y, ex fresh food 2.2% and ex fresh food & energy 1.5%
While it is a "relatively" steady Asia session this week, USD/JPY still have a range of almost 80 pips volatility in early Asia. Tokyo July Headline CPI came in at 2.2% y/y, ex fresh food 2.2% and ex fresh food & energy 1.5%. It continues to be hovering around BoJ's 2% target and the lack of heat may erode support for BoJ's further tightening. It aligns with our central forecast of BoJ's taking one step at a time in the meeting next week, only reduce bond purchase but no rate changes.
USD/JPY is trading 0.09% lower at 153.76.