The April US import price index exceeded expectations, pushing USD/JPY back up to the 155 yen level.

【5/16Market Overview

Tokyo time, the USD/JPY continued the decline seen yesterday, with selling leading. Amid signals of sizable dollar selling on domestic demand, the USD/JPY fell to as low as153.60yen. After the selling pressure eased, it rebounded to the low 154s.154yen in the early part of the range. In European hours, the USD/JPY saw short-covering (buy-to-cover) early,154.45yen higher.During the NY session,5th month U.S. Philadelphia Fed manufacturing index,4th month U.S. housing starts data and prior week's initial jobless claims were weaker than expected, but4th month U.S. import price index came in above expectations, lifting U.S. Treasury yields and pushing USD/JPY up to105043? Actually, this placeholder seems garbled. The intended value is 155.53; USD/JPY rose to155.53yen.

Additionally,FOMCmember Barkin, president of the Richmond Fed, said, “CPI is stillCPIhas not yet reached the target the Fed is aiming for,” “We are on the right path, but it may take a little more time,” and, separately, Federal Reserve Bank of Cleveland President Mester said, “Holding the policy rate at the current level would still be consistent with bringing the inflation rate back to the target of2%.”