Japan National Core CPI y/y comes in at 1.8% against 2.1% consensus

Japan’s National Core CPI year over year, released at 23:30 UTC, came in at 1.8%. This figure was below the consensus expectation of 2.1%, representing a -14.3% surprise versus consensus. The previous month’s reading was 1.6%.

Following the release, JPY pairs showed limited movement. USDJPY moved +3.4 pips five minutes after the print and was +0.2 pips fifteen minutes after. AUDJPY moved +1.8 pips at five minutes and +0.1 pips at fifteen minutes. EURJPY saw a +1.6 pip move at five minutes and +1.5 pips at fifteen minutes. Other JPY crosses also showed small initial moves. For context, USDJPY has a median 1-hour move of 7 pips after past releases, and AUDJPY has a median 1-hour move of 6 pips. EURJPY typically sees a median 1-hour move of 7 pips. The measured market reaction so far is small relative to these typical moves.