USD/JPY flows: June National CPI Stays Elevated

While it is a relatively quiet Friday Asia session in the FX market except the Kiwi, we have the Japan June National CPI staying elevated. The National Headline CPI came in at 2.8% y/y, ex fresh food 2.6%, ex fresh food and energy 2.2%. If you only look at CPI, it would be supportive for BoJ's next step in less easing. But there are signs consumption is lagged behind and that is no what BoJ want to see in in the inflationary dynamics, suggesting BoJ steps will not be a big one by the end of July.

USD/JPY is trading 0.03% higher at 157.41 with U.S. Treasury yields outperforming JGB's.