The US CPI has pushed the yen higher

On July 11, data showed that U.S. inflation cooled much more than expected on Thursday, and the yen rallied sharply against the dollar. Market sources said the dollar sell-off was likely the result of profit-taking following weak U.S. data, but traders remained on high alert for signs of fresh intervention by Japanese authorities to boost a currency hovering near a 38-year low. The dollar fell as much as 2.5% against the yen to below 158. Kenneth Broux, head of FX and interest rate corporate research at Socie ́ te ́ Ge ́ ne ́ rale, said that this is undoubtedly a big market, but it cannot be said to be related to intervention. CPI is the trigger. The U.S./Japan plunge is more about triggering stop losses than intervention.