USD CPI forecast undershoot, then Powell's hawkish remarks at the Fed, causing wild USD/JPY fluctuations.

【6/12Market Overview

From Tokyo time to European time, the USD/JPY pairing remained around the low-157s as investors awaited theCPI (Consumer Price Index) andFOMC decision.157-level range and consolidation continued.New York time,5th U.S.CPICPI105 after the yield on 10-year Treasuries fell, hittingyen.

At themeeting, as expected by the marketFF target range was kept at5.25–5.50%, and the dot plot (the distribution of rate forecasts) showed the expected number of rate cuts this year falling from3 to1. Following remarks from Chair Powell, who said, “Inflation has eased significantly but remains too high,” and that more data are needed to build confidence in inflation, and that the Fed will continue to scrutinize inflation risks, the market interpreted the statement as hawkish, sending the USD/JPY back up to around156.80yen.