Just when it seemed that the scare of Yen could be relieved, Japan has reported an increase in nucleus inflation.
The data published on Friday morning showed the central inflation of Japan, which releases fresh food prices, increased 3% year after year in February, moderating from January 3.2% but exceeding the prognosis of consensus for 2.9%. The titular consumer price index decreased to 3.7% of 4%.
In general, both indices remained well above the inflation target of 2% of the Bank of Japan, validating the victory statement of the head of the Central Bank Haruhiko Kuroda for decades of deflation. In particular, since November, the main inflation of Japan has been running hotter than that of the United States, almost 100 basic points (BP) higher now.
The sticky inflation, more salary increases in Shado’s salary negotiations, have reinforced the calls of boxwoods. In other words, a possible yen rally, known for destabilizing risk assets, including cryptocurrencies, is back at the table.
At the time of writing, the couple of dollars (USD/JPY) quoted in 149.22, having bouncing in almost 300 pip in a sign of weakness of renewed yen since March 11, according to Data Fouuring TradingView.
That said, the 10 -year bond pace of narrowing or decrease in Japanos supports the yen force. Japanese yields have increased through the curve, offering upward signals to Yen. When writing, the 10 -year bond yield from Japan remained above 1.5%, and the 30 -year yield was greater than 2.5%, both at multiple maximums.
A and renewed strength could translate into risk aversion, as we saw in August last year.
