USD/JPY rebounds from lows near 154.75

Now some of you out there might be thinking the reaction across the markets to the latest US CPI data looks a little extreme and you might be right, but in truth the dollar was under pressure all morning and not bouncing at all and this slightly benign set of CPI numbers has now led the wizards in the markets to price 2 Fed cuts this year from one. We shall just have to see it that turns out to be the correct outlook in due course. Anyway the US bond markets liked all this and that has seen the 2 Year note yield fall below 4.75%. The reaction to that move in the USD/JPY has been to push it below the 155 handle. The low seen so far has been set at 154.76, BUT it is rebounding now, perhaps ass the knee jerk reaction to the data was a little extreme ? The USD/JPY is right now trading at 155.30