Correction: Tokyo CPI beats prior 4.0%, YoY at 4.4%, yen higher

The Tokyo Consumer Price Index that is released by the Statistics Bureau has fallen in as follows:

• Japan Tokyo CPI (YoY) Jan: 4.4% (est 4.0%; prevR 3.9%).
• Tokyo CPI Ex-Fresh Food (YoY) Jan: 4.3% (est 4.2%; prevR 3.9%).
• Tokyo CPI Ex-Fresh Food, Energy (YoY) Jan: 3.0% (est 2.9%; prev 2.7%).

USD/JPY update

The markets are paying closer attention to such data as the sentiment for a reversal in the Bank of Japan’s (BoJ) monetary policy would be such a ground-breaking event that it would have a big impact on the Yen and forex in general. 

USD/JPY has dropped 30 pips on the data. 

There are prospects of a bounce but the data does underpin the bullish yen sentiment for longer. We have more red news on the calendar later today in the US session, so there could be a quiet before the storm in markets ahead of the Core Person Income Expenediture data.

About Tokyo CPI

The Tokyo Consumer Price Index is released by the Statistics Bureau and it's a measure of price movements obtained by comparison of the retail prices of a representative shopping basket of goods and services. The index captures inflation in Tokyo. CPI is the most significant way to measure changes in purchasing trends. The purchase power of JPY is dragged down by inflation. Generally a high reading is seen as positive.