USD/JPY flows: National CPI Jump to 4%

The Japan national CPI has Jumped to 4% in January with ex fresh food at 3.2% and ex fresh food & energy at 2.5% y/y. The jump continues the latest uptrend as a big chunk of inflation came from food and energy products, underlying inflation should be dismissed as well. While data like this should be generally JPY supportive, Japan’s Finance Minister Katsunobu Kato warned that rising bond yields could strain the country’s finances. Multiple officials are echoing his concern and see JPY offered in fear of an intervention in the bond market.

USD/JPY rose 0.51% to 150.38.