USD/JPY and Nikkei 225 futures have been heavily influenced by US bond yields recently, meaning Tuesday’s US consumer price inflation report looms as critical for how Japanese markets may fare over the short to medium term. The bias for each remains lower in the absence of another hot inflation number. BOJ “fears” not behind USD/JPY, Nikkei 225 weakness: Rather than Bank of Japan rate rise fears rattling Nikkei 225 futures and USD/JPY in March, it’s really the US interest rate outlook that’s been moving these markets. USD/JPY has been closely correlated to US 10-year yields on a rolling one-month basis dating back to ... (full story)