Japan January 2026 wholesale inflation. PPI 2.3% y/y (vs. expected 2.3%)

💡 DMK Insight

Japan’s January wholesale inflation slowing to 2.3% is a key indicator for traders: it suggests potential shifts in monetary policy. With import prices rising, this could signal increased costs for businesses, impacting profit margins. Traders should keep an eye on the Bank of Japan’s response, as any hints of tightening could affect the yen’s strength. If the BoJ decides to act, it might create volatility in forex pairs involving the yen, particularly against the USD. Watch for key levels around recent highs and lows in USD/JPY, as they could provide entry or exit points. Also, consider how this inflation data might ripple through commodities, especially if import prices continue to climb, affecting overall market sentiment.