USD/JPY towards 151.10 – the drop began before the CPI data officially published

The Tokyo headline CPI data showed a big jump in November:

• Tokyo area November inflation data, a big jump higher: Headline 2.6% y/y (prior 1.8%)

As I said in that post, this data is a point in favour of a Bank of Japan rate hike at its December 18-19 meeting, and thus yen supportive.

If you were having a break from eating turkey you’d have seen USD/JPY dropping just prior to the data release. Things like this do happen, sure, but things like this can also be suspicious (someone got a leak?).

Information flow from Japan can often be a bit leaky. There is a reason we have a pic like this in the ForexLive archive!

This article was written by Eamonn Sheridan at www.forexlive.com.