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Awaiting release of US CPI

The yen strengthened to ¥139.31 today. The momentum of foreign buying back of the yen is strong. This is due to speculation that a change in policy will be made at the BoJ’s policy meeting at the end of this month. The strength of the buyback suggests that there is considerable confidence in a change in policy.

So until the BOJ policy meeting is over, there will be no resolution to this dollar/yen market.
The yen will probably continue to smoulder under pressure until 28 July.

Today’s CPI, though, is expected to be quite low. However, the market is probably looking at the core index part. If this falls to the 4% range, the dollar could fall further.