This report is coming back into focus, in fact, Inflation around the world is being watched more closely than in previous months. Today there are 4 main lines of data released, which are: -
CPI - Core (M/M) – Month on Month
CPI - Core (Y/Y) - Year on Year
CPI (M/M) – Month on Month
CPI (Y/Y) - Year on Year
The focus is on CPI - Core (M/M)
I’m looking for a Deviation of 0.2% or greater in either direction from the forecast of 0.2% to take a trade. So, an actual figure of 0.0% to Sell USD or 0.4% to Buy USD. I will trade USDJPYAs long as CPI - Core (M/M) deviates by 0.2% or more and the other 3 lines of data (which come at the same time) do not conflict then we should expect a good reaction from USDJPY!.
Check out last month’s 0.2 deviation, and bear in mind that I expect the same deviations to create a better reaction today!
See Charts here ->
We can see a small but gradual move over one minute. Most of last year, the same deviations were not moving the market, as conditions were very different then but I believe the focus is back. Here’s an example of how poor the move was with similar deviations back in Nov 2020
See Charts here - >