USD/JPY gains for the time being stunted by wider dollar relapse

The USD/JPY jumped higher yesterday when the latest US CPI data hit the screens. That came as US yields rose sharply and the reaction in the USD/JPY was a logical one. That saw the USD/JPY lead the gains for the dollar and it eventually rose above above 154.50 ahead of the US close. The later rebound in the EUR/USD and GBP/USD following the Trump headlines did not send the USD/JPY back much either. That was because once again the Yen cross rate dynamic delivered rapid gains in the GBP/JPY and the EUR/JPY, even as the GBP/USD and EUR/USD rebounded. So, the USD/JPY closed in the US last night at 154.42. However, this morning the USD/JPY did drop back. The reason for that is due to a stalling in US yields so far today and also the USD/CNH has fallen back underneath 7.30. The further rise in the EUR/USD and GBP/USD earlier today also added a further immediate headwind on this occasion. So, the USD/JPY dropped to 153.96 earlier. It is off that low now though, but the further upside here is being held in check for the time being, for all the reasons just mentioned. As to whether that will continue remains to be seen. The USD/JPY is right now at 154.27