• USD/JPY was higher on the CPI beat

• Core was 0.3% vs 0.2% f/c, the trigger Waller flagged for a possible 50bp December hike

• Markets now price a 12% probability of a 50bp hike

• Spot hit a fresh monthly high at 158.85, nearing range tops at 158.95-159.03

• A position squeeze in US fixed income sees the 2-year yield rise 20bps, the most since April 2025

• 159 is key. A clean break opens 160 quickly, while a hold keeps the consolidation intact
USDJPY daily

Justin McQueen is a Reuters market analyst. (The views expressed are his own). ((Email: ))