USD/JPY flows: Strong CPI Reinforces Rate Hike Later

The Japan December headline CPI jumped to +3.6% with core CPI also at 3%. It seems to suggest why the BoJ has been suggesting another rate hike in the later meeting. Market participants are expecting another 25bps hike but we fear the BoJ will be surprising to the dovish side again.

USD/JPY is 0.09% higher at 156.18.