USD/JPY bounces post Tokyo CPI

FXStreet (Bali) - The USD/JPY rebounded towards 102.35 after Japanese/Tokyo headlines came very much in line with expectations, with the rise most probably a response of the miss in core Tokyo CPI, which came at 2.7% vs 2.8% expected.

Note that the strong rise in the core consumer prices in Tokyo, despite missing expectations, is the fastest gain since 1992 due to the increase in Japan's sales tax.

Ahead of the Tokyo open, the pair continues to trade heavy nevertheless, currently at 102.28, with most of the quick upwards extension now rotated back down as offers appear to pile up above. It is worth noting that despite the recent run up off key support at 101.80/102.00 earlier this month, the pair is having a hard time regaining the 50% fib retrac from the 104-101.30 decline.

Japan Tokyo CPI ex Food, Energy (YoY) increased to 2% in March from previous 0.4%

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Tokyo core CPI at 22-yr high post sales tax hike

Core consumer prices in Tokyo for the month of April, which excludes fresh food, came at 2.7% from a year earlier,representing the fastest growth in 22 years, with the sales tax hike to blame for such a high re-adjustment.
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