JPY outperforming as Tokyo CPI firms expectations for continued BoJ tightening – Scotiabank
Japanese Yen (JPY) is strong and outperforming all of the G10 currencies, entering Friday’s NA session with a 0.3% gain against the US Dollar (USD), Scotiabank's Chief FX Strategist Shaun Osborne notes.
Longer-term trend for USD/JPY remains bearish
"A run of stronger than expected (Tokyo) CPI, industrial production, and retail sales data was responsible for the JPY’s Asian session gains as market participants considered their implications for the next BoJ policy meeting on June 17."
"The Tokyo CPI print was most important, printing 3.6% y/y to reach its highest level since (the post-pandemic surge) of late 2022/early 2023. Japan’s government bond market took the release in stride, and a JGB auction of two year notes attracted its highest bid-to-cover ratio in four months."
"The longer-term trend for USD/JPY remains bearish however near-term technicals are neutral as we await a break of the recent range roughly bound between 140 and the mid-148 area."
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FXStreet Insights Team
FXStreet
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