Tokyo Core CPI Beats at 1.5% YoY, Yen Rally Sends USD/JPY to 151.80

Tokyo's core CPI excluding fresh food rose 1.5% year-on-year in April, surpassing the 1.4% consensus and fueling a sharp yen advance that drove USD/JPY down from 152.50 to 151.80, while 10-year JGB yields climbed 3 basis points to 0.95%. The data followed an initial soft headline print of 1.5% y/y (vs 1.6-1.7% expected), with core ex-food at 1.5% (below 1.8% forecast) and core-core at 1.9% (vs 2.3%), but energy (+0.6pp) and services (+0.5pp) contributions shifted focus to earlier BOJ rate hikes. This narrows U.S.-Japan rate gaps, favoring yen bulls and financials over exporters.