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When is the Japan Tokyo CPI and how it could affect USD/JPY?

Statistics Bureau of Japan will publish its data for February on Friday at 23.30 GMT. The Tokyo CPI measures the price fluctuation of goods and services purchased by households in the Tokyo region, excluding fresh food, whose prices often fluctuate depending on the weather.

🔗 Source

💡 DMK Insight

Tokyo’s CPI data release is looming, and here’s why it matters for traders: inflation readings can sway market sentiment. With the Bank of Japan’s ongoing monetary policy adjustments, any unexpected CPI figures could trigger volatility in the yen and related assets. If inflation rises more than anticipated, it could lead to speculation about tighter monetary policy, impacting forex pairs like USD/JPY. Conversely, a lower CPI could reinforce the current accommodative stance, keeping the yen under pressure. Traders should keep an eye on the 23.30 GMT release, as the immediate reaction could set the tone for the rest of the week. Watch for key levels around 145.00 in USD/JPY; a break above could signal further bullish momentum, while a dip below 143.50 might indicate a bearish reversal. The real story is how these numbers could ripple through global markets, especially if they deviate significantly from expectations.

📮 Takeaway

Monitor the Tokyo CPI release on Friday at 23.30 GMT; significant deviations could impact USD/JPY and set the week’s trading tone.

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