It might be a tricky one for the USD/JPY later today

Ordinarily speaking the USD/JPY would be front and centre to any FX market reaction resultant from US economic data that is significantly positive. However, today the situation is a little less clear, because the market is still wary of pushing the dollar above 152, for fear of igniting a reaction from the Bank of Japan. That is not to say the dollar will not rise above 152, if the US CPI data pushes back on the prospect of a rate cut from the Fed. Conversely, right now, anything that is markedly weaker than forecast in the US CPI data could provide a green light to the push the dollar further back from that 152 level. It does also rather depend on how the US bond markets react too. If US yields take a real hit, then it will be a lower CPI number that delivers such a move. If that happens the USD/JPY may have a hard time resisting a slide well below 151 again. All will be revealed at 1.30pm GMT it seems. Meantime, the USD/JPY is a little higher than it was at the time of the previous update on its progress this morning. The USD/JPY is currently trading at 151.85