USDJPY:
Data released Friday by Japan’s Statistics Bureau showed that Tokyo’s overall consumer price index rose 2.6% year-on-year in August, down from 2.9% previously. Meanwhile, core inflation in Tokyo fell to 2.5% year-on-year in August from 2.9% in July, in line with market forecasts.
As of August 29, 2025, Tokyo’s core consumer price index (CPI) fell to 2.5% year-on-year in August, in line with market forecasts. The Tokyo CPI index excluding fresh food and energy, which is closely monitored by the Bank of Japan (BoJ), rose 3.0% year-on-year in August, compared to the previous reading of 3.1%.
These Tokyo inflation reports support market expectations for a resumption of interest rate hikes, which is supporting the Japanese yen.
On the other hand, higher-than-expected US gross domestic product (GDP) for the second quarter (Q2) may support the US dollar. The US economy grew 3.3% year-on-year in the second quarter, exceeding initial estimates.
Trade recommendation: SELL 146.85, SL 147.60, TP 145.80
Origin: FreshForex
