The headline Tokyo Shopper Worth Index (CPI) for January rose 1.5% YoY as in comparison with 2.0% within the earlier month, the Statistics Bureau of Japan confirmed on Friday.
Moreover, Tokyo CPI ex Contemporary Meals climbed 2.0% YoY in January in opposition to 2.2% anticipated and a pair of.3% within the prior month. The Tokyo CPI ex Contemporary Meals, Vitality rose 2.0% YoY in January, in comparison with the earlier studying of two.3%, beneath than market consensus of two.2%.
USD/JPY response to the Tokyo Shopper Worth Index knowledge
As of writing, the USD/JPY pair is down 0.17% on the day at 153.12.
Japanese Yen Worth Immediately
The desk beneath exhibits the share change of Japanese Yen (JPY) in opposition to listed main currencies immediately. Japanese Yen was the strongest in opposition to the US Greenback.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.24% | -0.11% | -0.28% | -0.56% | -0.36% | -0.46% | -0.68% | |
| EUR | 0.24% | 0.13% | -0.05% | -0.32% | -0.12% | -0.23% | -0.44% | |
| GBP | 0.11% | -0.13% | -0.17% | -0.45% | -0.27% | -0.38% | -0.57% | |
| JPY | 0.28% | 0.05% | 0.17% | -0.27% | -0.08% | -0.21% | -0.39% | |
| CAD | 0.56% | 0.32% | 0.45% | 0.27% | 0.20% | 0.08% | -0.12% | |
| AUD | 0.36% | 0.12% | 0.27% | 0.08% | -0.20% | -0.11% | -0.31% | |
| NZD | 0.46% | 0.23% | 0.38% | 0.21% | -0.08% | 0.11% | -0.21% | |
| CHF | 0.68% | 0.44% | 0.57% | 0.39% | 0.12% | 0.31% | 0.21% |
The warmth map exhibits share modifications of main currencies in opposition to one another. The bottom foreign money is picked from the left column, whereas the quote foreign money is picked from the highest row. For instance, when you decide the Japanese Yen from the left column and transfer alongside the horizontal line to the US Greenback, the share change displayed within the field will characterize JPY (base)/USD (quote).
This part beneath was printed at 22:36 GMT as a preview of the Japan’s Tokyo Shopper Worth Index (CPI) knowledge
The Japan Tokyo CPI Overview
Statistics Bureau of Japan will publish its knowledge for January on Friday at 23.30 GMT. The Tokyo CPI measures the value fluctuation of products and companies bought by households within the Tokyo area, excluding recent meals, whose costs typically fluctuate relying on the climate. The index is broadly thought of as a number one indicator of Japan’s total CPI, as it’s printed weeks earlier than the nationwide studying.
The Tokyo CPI ex Contemporary Meals, Vitality is predicted to point out a rise of two.2% YoY in January versus 2.3% prior, whereas Tokyo CPI ex Contemporary Meals is projected to point out an increase of two.2% YoY throughout the identical interval, in comparison with 2.3% in December.
How might the Japan Tokyo CPI have an effect on USD/JPY?
USD/JPY trades on a destructive be aware on the day within the lead as much as the Japan Tokyo CPI report. The main pair loses floor because the US Greenback (USD) weakens amid worries concerning the Federal Reserve (Fed) independence and issues over one other US authorities shutdown.
If knowledge is available in hotter than anticipated, it might carry the Japanese Yen (JPY), with the primary upside barrier seen on the 100-day Exponential Shifting Common (EMA) of 154.22. The subsequent resistance stage emerges on the January 26 excessive of 155.35, en path to the January low of 155.68.
To the draw back, the January 29 low of 152.68 will provide some consolation to patrons. Prolonged losses might see a drop to the January 28 low of 152.18. The subsequent competition stage is situated at the October 28 low of 2025 at 151.76.
Financial institution of Japan FAQs
The Financial institution of Japan (BoJ) is the Japanese central financial institution, which units financial coverage within the nation. Its mandate is to difficulty banknotes and perform foreign money and financial management to make sure worth stability, which implies an inflation goal of round 2%.
The Financial institution of Japan embarked in an ultra-loose financial coverage in 2013 to be able to stimulate the financial system and gasoline inflation amid a low-inflationary surroundings. The financial institution’s coverage relies on Quantitative and Qualitative Easing (QQE), or printing notes to purchase property comparable to authorities or company bonds to supply liquidity. In 2016, the financial institution doubled down on its technique and additional loosened coverage by first introducing destructive rates of interest after which instantly controlling the yield of its 10-year authorities bonds. In March 2024, the BoJ lifted rates of interest, successfully retreating from the ultra-loose financial coverage stance.
The Financial institution’s large stimulus prompted the Yen to depreciate in opposition to its major foreign money friends. This course of exacerbated in 2022 and 2023 as a result of an rising coverage divergence between the Financial institution of Japan and different major central banks, which opted to extend rates of interest sharply to battle decades-high ranges of inflation. The BoJ’s coverage led to a widening differential with different currencies, dragging down the worth of the Yen. This development partly reversed in 2024, when the BoJ determined to desert its ultra-loose coverage stance.
A weaker Yen and the spike in international vitality costs led to a rise in Japanese inflation, which exceeded the BoJ’s 2% goal. The prospect of rising salaries within the nation – a key aspect fuelling inflation – additionally contributed to the transfer.
