USD/JPY dips to 143.80 after solid Tokyo inflation data

The Tokyo inflation data is here:

• Tokyo May 2025 headline CPI +3.4% y/y (3.4% expected)
• Core is at its highest since January 2023
• Core-core is at its highest since January 2024

If these numbers translate into the national level CPI for the month, due ion around 3 weeks, it’ll boost Bank of Japan confidence that inflation is solidifying around target and will, at the margin, encourage a rate hike.

Meanwhile, yen is attracting a wee bid, adding to its overnight rebound:

I thought this was significant for the yen bid a little earlier also:

• Us Treas Sec Bessent admits that talks with China are a bit stalled

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