Published: 2024-01-26T04:48:44.000Z
USD/JPY flows: Limited range despite Tokyo CPI Slump
FX Analyst
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Tokyo CPI for January +1.6% (expected 2%)
Japan finance minister Suzuki says govmt and BOJ working together to hit inflation target
Friday's Asia session so far is quiet with major FX pairs in limited range. The January Tokyo CPI has surprised to the down side as headline came in at 1.6% vs expectation of 2%, slumping from 2.4% in December. Less fresh food also dropped from 2.1% to 1.6% in January, so as less fresh food and energy to 3.1% from 3.5%. Despite base effect maybe a factor, it no doubts show a slower inflation picture and will allow the BoJ to be patient in exit loose monetary policy.
USD/JPY took the cue to trade 0.09% higher at 147.78 with JGBs yields falling more than U.S. Treasury Yields.