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USD/JPY waiting on US PCE report

Earlier today a better than forecast Japanese retail sales report was rather eclipsed by the latest Tokyo area CPI data. Although that data was higher than previously reported (+1.6%), it was bang on expectations and once again below the 2% mark, at 1.9%. The Yen did react to that data, but it has not broken an immediate range, seemingly covered for now by 156.50 to 157.00. Yesterday the dollar did briefly slip below 156.50, but not for very long and later closed in the US at 156.82. US yields are ever so slightly higher this morning and that remains the over-riding dynamic heading into the important US PCE report later today. So, it seems likely; that this data will be key in deciding whether or not the dollar ends the week above 157, or perhaps defines the end of this rebound from the recent 151.86 interim low. There will be much more to add on the outlook for that data, as the morning unfolds. Meantime, the USD/JPY is currently trading at 156.90 

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