University of Michigan consumer sentiment index falls- USD/JPY slips and rebounds

The University of Michigan consumer sentiment and inflations expectations indexes have just been released. These are the preliminary May readings and as such are subject to revision in the future. The inflation expectation is probably the most in focus here right now and that was expected at 6.5% for the one year and 4.4% for the 5-10 year. Well, both have risen above forecast. The one year has risen to 7.3% which is a marked increase. The index itself has fallen on all counts and that is not great and a rather toxic mix. So, the USD/JPY has fallen slightly on this news, but so far not by that much. Perhaps the prospect of higher for longer Fed rates on the back of this data might explain the reaction. The USD/JPY fell immediately to 145.40 on this, but it has rebounded just as fact and it is actually trading higher now, around 145.56