In my guide for what to watch in the US CPI report, published yesterday:
I pointed out that it had high priority implications for Japanese officials:
- Japan's Ministry of Finance (and the Bank of Japan) will be eyeing it for the prospects of JPY intervention, if CPI surprises to the topside it'll spur USD/JPY buying and delay potential intervention to support the yen (at the margin)
And that is playing out. Why would Japanese authorities stand in front of a freight train? USD/JPY jumped above 152 easily. And now its attacked, and surpassed, 153.00. This is not merely a yen weakness move, but a US dollar strength one.
Here is what we'll be hearing out of Japan today (empty words really, but it is what we'll be getting):
![usdyen us cpi boj 11 April 2024 2](https://images.forexlive.com/images/usdyen%20us%20cpi%20boj%2011%20April%202024_id_7f098faa-bb50-47fd-a5ad-089036efc5ad_size900.jpg)
As a ps., if you don't have fun with fundamentals like this, and prefer the technicals only, I've got your back! Check out that link just above for a 'this is not rocket science' view on USD/JPY before it surged higher after CPI: