USD/JPY flows: Another challenge of yearly high
Bank of Japan Governor Ueda says BOJ JGB holdings will remain at current levels for now
More verbal intervention from Japan finance minister Suzuki
February National headline CPI 2.8% vs. 2.2% in January
USD/JPY stay at recent high after a volatile post FOMC session. U.S. Treasury Yields slip while JGB yields are higher. We got more remarks from Ueda but it is only about general action after exiting ultra-loose monetary policy. Suzuki also did his rounds of jawbone intervention and see USD/JPY retreated from session high. National y/y CPI see a rebound in February after inching closer to 2% in January. Less fresh food y/y CPI also rebounded to 2.8% from 2% while less fresh food and energy continues to moderate to 3.2% from 3.5%. We forecast all three categories to resume easing in the coming months.
USD/JPY is trading 0.05% lower at 151.52 after challenging Oct 2022 high circa 151.94.