USD/JPY reclaims 133.00 after CPI data

The USD/JPY pair registers gains of 0.50%, above the 133.00 mark. US inflation data, though mixed, triggered the recent US Treasury bond yields’ jump, pushing the USD/JPY forward.

The USD/JPY reached a new YTD high of 133.13, though it failed to cling to those gains, retracing beneath last week’s high of 132.90 after the release of US economic data, spurring a retracement. Therefore, the USD/JPY consolidates within the 132.70-133.00 area. At the time of writing, exchanges hands at 133.06.

The Department of Labour revealed that inflation in the United States (US) cooled down annually but came slightly above estimates. The Consumer Price Index (CPI) for January rose by 6.4% YoY, above forecasts of 6.2%, while core CPI jumped to 5.6% YoY, against data estimated at 5.5%. Monthly basis readings were in line with estimates.

On the Japanese front, the confirmation of the Bank of Japan’s new Governor, Kazuo Ueda, sparked speculations that the BoJ would abandon the Yield Curve Control (YCC) imposed under Governor Haruhiko Kuroda’s term. Thar should be considered bullish for the Japanese Yen (JPY), which has extended its losses in the North American session so far.

Fed officials continued to express the need to hike rates for longer than expected, according to Dallas Fed President Lorie Logan. She echoed some earlier comments of Richmond’s Fed President Thomas Barkin, who said that inflation risks still outweigh others.