USD/JPY flows: CPI Slows

All three items of Japanese CPI moderates in December. While the headline show a large degree of moderation, it is mostly from base effect from 2024's energy rebate expiration. However, we do see ex fresh food CPI eases to 2.4% while ex fresh food and energy more stubborn at 2.9%. The BoJ will unlikely change their stance on rates after reading this report.

USD/JPY is trading 0.2% higher at 158.65.