JPY Resilience Amidst US Inflation: A Deeper Dive into USD/JPY Dynamics

The Japanese Yen shows surprising resilience, with USD/JPY declining to 157.85 despite hotter US inflation. This suggests market focus is shifting towards BOJ normalization and intervention risks, overshadowing immediate US data. Technicals show bearish signs, and unwinding of long JPY positions is expected. Outlook is cautiously bearish for USD/JPY, with strategic implications for carry trades.