Talking Points:
- Japan’s CPI 0.0% y/y in January as expected, down from 0.2% in December
- Core CPI 0.7% y/y, in line with forecasts and down from 0.8% y/y previously
- USD/JPY resumed intraday rally after CPI data matched status-quo outlook
See how retail traders are positioned in the Yen with the DailyFX SSI.
The Yen resumed its intraday decline against the US Dollar after Japan’s inflation statistics crossed the wires. The headline figure registered flat at 0.0 percent year-on-year in January, in line with the consensus forecasts but down from December’s print at 0.2 percent. Core CPI – a measure excluding food and energy prices – came in at 0.7 percent year-on-year and also matched analysts’ expectations.The Japanese currency had been falling against the US Dollar for the majority of trading day. Prices paused for a bit ahead of the CPI release, with traders apparently waiting to see if event risk would offer a new directional lead. The intraday trend appeared to resume after the inflation data set printed mostly in line with expectations.
