USD/JPY erased its post-CPI rally, falling back below 158.00 as a reversal in US bond yields pressured the pair after it briefly touched a three-week high of 159.00.
The USD/JPY pair experienced significant volatility following the release of hotter-than-expected US inflation data, initially surging to a three-week high of nearly 159.00. However, the pair failed to sustain these gains and retreated below its pre-release levels as US bond yields reversed their upward trajectory, signaling a bearish shift for the session.
The pair reached just under 159.00, marking its highest level since September 24.
The reversal was driven by a decline in US bond yields after the initial spike following the inflation report.
The USD/JPY pair surrendered all gains following a hotter-than-expected US inflation report. After hitting a three-week high near 159.00, the currency pair retreated below the 158.00 level as US bond yields declined, signaling a bearish intraday shift.
The pair reversed because US bond yields turned lower following the initial volatility caused by the hotter-than-forecast US inflation figures.