The JPY is once again in focus this week as Japanese inflation data is to be released early Friday morning. So, with Governor Ueda disappointing JPY bulls this week by saying that the BoJ was still away from sustainably achieving the 2% inflation target, will we see a surprise reaction on Friday?
The super core reading is expected to stay elevated at 4.2% y/y, but will a high inflation print result in more JPY strength?

Notice the strength in the JPY across these key FX pairs. The GBPJPY, AUDJPY, CADJPY, and USDJPY all display a period of seasonal weakness. So, if the Japanese inflation data is a big miss, will we see the JPY gain once again in line with its seasonal pattern?

Major Trade Risks: Remember, that previous seasonal patterns do not necessarily play out every year, and don’t forget that BoJ policy will also impact this outlook as it will meet on July 28.

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