USD/JPY is dribbling a little lower after the Japanese June inflation figures

USD/JPY is sliding a little, its moving under 140.00 more convincingly following the inflation data a few minutes ago:

Japan June CPI, headline +3.3% y/y (expected +3.5%)

As noted in that post, both core measures were in line with expectations. All three measures remain well above the Bank of Japan's 2% inflation target. I will sound like a broken record if I say that the BOJ keeps insisting that the current high level of CPI measures is transitory. The Bank expected inflation to fall back from around October. Officials say the current high (for Japan) levels are due to cosh push factors that are transitory and they dint think target inflation can be maintained until demand pull, from rising wages, inflation takes over.

The BOJ meet next week, no change is expected.

Link to earlier posts on Japan, inflation, and the outlook for the July 27/28 Bank of Japan meeting:

• Governor Ueda and his officials at the Bank have been ... insisting that inflation is transitory and does not necessitate a move away from easy policy

• Bank of Japan Governor Ueda comments this week have watered down YCC tweak expectations
• October is now the month most cited as the likely timing for a BOJ policy change

• Former Japan Yen intervention boss - BOJ won't tweak yield curve control (YCC) next week