Japanese inflation hits four-decade high, USD/JPY responds.
Japanese inflation has risen above 3%, with underlying core-core CPI jumping above 4% in April. The Bank of Japan insists that current high levels of inflation are transitory and caused by cost-push factors, not demand-pull. The bank expects rates of price growth to decline from around September/October this year and is not planning to tighten policy anytime soon. USD/JPY barely moved in response to the data.