USD/JPY hands back some of the PPI bounce

As just covered here in the past two updates, the reactions immediately following the much higher than expected US PPI report have come and gone pretty quickly. The USD/JPY spiked higher to around 159.15, but in very short order gave a good deal of that back, but it is jittery right now and to be honest, leaving aside any threat from the BOJ this afternoon, the dollar should be reversing much of what it lost on the CPI data yesterday. That remains to be seen though, but the reason for that is because very often higher PPI numbers will be translated into gains for the CPI a few months down the road. We shall just have to see about that though. Meantime, FX volatility is elevated again this afternoon, as indeed it clearly was yesterday after the BOJ stepped in. The USD/JPY is just now trading at 158.87