Japan’s corporate goods price index surged in May, yet the yen remains under pressure against the dollar at 160.40.
The Japanese yen showed little reaction to accelerating wholesale inflation in May, with USD/JPY trading steady around 160.40 during Asian hours. The pair remained flat after recent volatility, reflecting persistent weakness in the yen despite stronger price pressures in the corporate sector.
Japan’s corporate goods price index rose sharply last month, exceeding expectations and marking the fastest increase in over a year. However, the data failed to provide support for the yen, which has struggled amid diverging monetary policy outlooks between the Bank of Japan and the U.S. Federal Reserve.
Market focus now shifts to upcoming U.S. inflation data and the Fed’s policy signals, which could further influence the USD/JPY pair.