Free Trial

Iranian Gas Deal with Oman Revived




Former BOJ Chief Economist interview


Kiwi extends gains

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

USD/JPY posted a leg lower and pierced Thursday's low in early Tokyo trade, as U.S. e-mini futures trade in the red, signalling that Wall Street woes may not be over. The retreat in U.S. stock indices is spilling over into Asia, with both Antipodean equity benchmarks losing ground.

  • Japanese CPI figures were just a tad worse than expected. The key measure of underlying inflation stayed at +0.5% Y/Y in December, missing the consensus forecast of +0.6%. The report pours some more cold water on recent speculation that the BoJ might start discussing policy normalisation.
  • The data comes after the BoJ earlier this week said that risk to the inflation outlook are roughly balanced, the first time they didn't see risks skewed to the downside since 2014. On that note, PM Kishida told lawmakers Thursday that the BoJ should continue to work towards achieving its official inflation target of +2.0% Y/Y.
  • The minutes from the BoJ's December meeting are due shortly. Looking further afield, Japan's flash Jibun Bank PMIs will be out on Monday, with Tokyo CPI coming up Friday. Elsewhere, the summary of opinions from the BoJ's most recent monetary policy meeting will hit the wires on Tuesday.
  • USD/JPY last sits at Y114.03, 8 pips lower on the day & off the earlier session low of Y113.86. Bears look for a further sell-off towards Jan 14 low/76.4% retracement of the Nov 30 - Jan 4 rally at Y113.49/43. Conversely, a jump above Jan 18 high of Y115.06 would expose Jan 11 high of Y115.68.
MNI London Bureau | +44 203-865-3806 |
MNI London Bureau | +44 203-865-3806 |

To read the full story

Why Subscribe to

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.