Soft Japan CPI at 1.4% Dents BOJ Hike Hopes as Yen Holds Near 159

Japan's April core inflation slowed to a four-year low of 1.4% y/y, well below expectations, undermining recent hawkish signals from BOJ board member Junko Koeda who had flagged underlying inflation near 2% and pushed for further rate hikes. The softer print follows upbeat Q1 GDP of 2.1% annualized and sharp spikes in 10-year JGB yields to 2.8%, keeping USD/JPY pinned near 159 amid repeated warnings of intervention from Finance Minister Katayama and U.S. Treasury Secretary Bessent. Markets now see reduced odds of a June BOJ hike, with the yen steady but vulnerable to further downside if price momentum stays weak.