It was another volatile week for the yen, though, given the lack of additional macro catalysts the dust has managed to settle with USD/JPY recovering from the week's low of 141.68.
This week's data has eased market fears, leaning against the recent pick up in hard landing odds.

As we look to next week, there is a plethora of event risk, most notably the U.S. CPI report, which will likely set the tone for FX in the short run.
Interestingly, PPI is due ahead of the CPI data, and thus will likely be more market moving than is often the case, with traders using PPI to gauge the potential CPI outcome.

The move higher in USD/JPY following Thursday’s claims print has petered out.
Resistance at 147.90-148.10 should continue to cap in the lead up to the CPI report and with U.S. yields paring the entirety of the claims spike, the door remains open for USD/JPY to retest 146.

Technically, USD/JPY is holding support at 146.50 (Mar lows/23.6% fibo).
However, with the S&P 500 .SPX struggling to end a three-week losing streak (~5347) and the U.S. 10-year yield US10YT=RR falling back below 4%, this bodes well for USD/JPY shorts.

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