Japanese Yen Little Changed Post CPI Release, BOJ on the Horizon

Talking Points

• National CPI -0.1% y/y in March versus 0.0% expected
• Yen crosses little changed as the data crossed the wires
• BOJ interest rate decision looms ahead as key event risk

Having trouble trading the Japanese Yen? This may be why.

The Japanese Yen failed to spark a significant reaction against its major peers after March’s core CPI figures missed expectations. Retail prices declined 0.1 percent year-over-year (Y/Y) versus 0.0 expected and +0.3 percent in February. Even though Bank of Japan’s main concern is the persistent threat of deflation, a minimal response from Yen crosses likely reflects traders hesitation to take on large positions ahead of an upcoming BOJ monetary policy announcement.