The really important US data for the USD/JPY this week

As we know the dollar versus the Yen is a little higher this morning. An earlier update noted the rebound back above the 147 handle in the USD/JPY today. That pair will also be front and centre on Wednesday, when we get what should be the most important economic release this week. That is July US CPI (Consumer Price Index) and it will be released at 12.30pm GMT. The USD/JPY will almost certainly react to any surprise from this data. So, right now the forecast is for Consumer prices to rebound by 0.2% in July, from a -0.1% fall in June. The annualised rate is forecast to remain unchanged at 3% and the core rate is forecast to edge a little lower, to 3.2% from 3.3%. If that data delivers a rise, then the USD/JPY and the short Yen carry trade could rebound further. Conversely, anything in the other direction in terms of CPI and it will be adversely impacted. Both moves, if seen will take place in a hurry too. Of course there is quite a bit of time between now and then and further updates will follow on all this ahead of the report on Wednesday