USD/JPY: Yen under pressure dspite uptick in Japan's core CPI, BOJ minutes stick to script
|- USD/JPY is extending the recovery from overnight lows near 109.25.
- Yen is losing ground despite the upbeat Japanese inflation data.
- The BOJ minutes reiterated the need for continued stimulus.
- Coronavirus scale may put a bid under the yen.
USD/JPY is flashing green in Asia with yen failing to gain ground on the back of upbeat Japanese inflation data.
The pair is currently trading at 109.52, having bounced up from the overnight low of 109.27.
Japan's core consumer price index (CPI) rose 0.7% in December from a year earlier following November's 0.5% rise. The headline CPI rose 0.8%, bettering the forecast of 0.4% by a big margin.
The inflation data was released at 23:30 GMT, but so far has done little to strengthen the bid tone around yen.
After all, inflation remained well away from the central bank’s elusive 2% target despite the acceleration from the previous month.
BOJ minutes reiterate easing bias
Bank of Japan's (BOJ) December monetary policy meeting minutes released a few minutes before press time reiterated easing bias.
Most members agreed it is appropriate to continue easing consistently, minutes said. The central bank has been running an ultra-easy policy for more nearly seven years and its easing bias has been priced in long ago.
Yen may gain ground on virus scare
The Japanese yen may find love, helping the pair reverse the bounce from 109.26 to 109.53 if the equities remain risk-averse on coronavirus scare. As of Jan. 23, there were 830 confirmed cases in China. The futures on the S&P 500 are currently reporting marginal gains.
Technical levels
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