Japan's high inflation!!

there are several factors to consider. First, the weakness of the Japanese yen has gone too far and that is seen in inflation figures.The National Core Consumer Price Index jumped from 0.8% YoY in March to 2.1% in April. While that seems low in comparison to American or British inflation, that may push the Bank of Japan to moderate its ultra-loose monetary policy.


The second factor is a verbal intervention , but from the Japanese Prime Minister Fumio Kishida. He said that rising raw material prices alongside a weaker yen is affecting households and businesses. He also called on keeping close ties with currency authorities overseas. Does he want a coordinated effort to strengthen the yen? A rare comment from Kishida may give a boost to the yen.

The third factor is the day of the week –While China has improved the mood, it could sour once again, sending money to bonds and lowering their yields. USD/JPY is highly correlated with US 10-year Treasury yields.Technicals also support a resumption of the fall. USD/JPY is trending within a broad downtrend and has failed to break above the 131.280.