According to the latest figures released by Japanโs Ministry of Internal Affairs and Communications, Tokyoโs core CPI rose sharply year over year to 2.7% in September, significantly exceeding the market expectation of 2.3% and the prior figure of 1.8%. Meanwhile, Augustโs unemployment rate came in at 2.5%, and the job openings-to-applicants ratio remained steady at 1.18, indicating that both the inflation rebound and the resilience of the employment structure are in place.
From a technical and macro-cycle perspective, Tokyoโs CPIโviewed as a leading national indicatorโhas broken through a key resistance level, completely shattering the channel of slowing inflation that had been in place. This above-expectations jump strengthens Japanโs real, underlying logic for exiting deflation, and gradually makes the marketโs expectations for monetary policy normalization clearer.
In the FX market, the yen has received strong fundamental support. Expectations of a narrowing interest-rate differential are being progressively priced in by the market in advance. For global assets, once the uncertainty โshoe drops,โ it actually releases the risk-off sentiment that had been weighing on long positions. There is no sign of a severe tightening in dollar liquidity, and the overall technical structure of risk assets remains stable.
As for the crypto market,
$BTC and major coins showed very strong buy-side absorption after the macro data was released. The repricing of the interest-rate differential did not trigger large-scale deleveraging. Instead, as liquidity expectations move toward stability, it creates a rebound window for a recovery in risk appetite, and the technical breakout structure remains healthy.
#BOJ #Inflation #JapanEconomy