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ForexMedium•13 February 2026•

1 min read

USD/JPY Eases as Soft US CPI Data Dampens Dollar Momentum

Golden-orange image with oil derricks, barrels, 'OIL > 102', and upward arrows. 'USD CAD' is central. Two eagles, 'FED HAWK', and 'INTEREST RATES TIGHTENING' with downward arrows are on the right. Fin

The USD/JPY pair experienced a notable decline on Friday as the US Dollar retreated from its earlier gains against the Japanese Yen. This downward pressure followed the release of US Consumer Price Index (CPI) data, which came in softer than market participants had anticipated. The cooling inflation figures have fueled expectations that the Federal Reserve may have less incentive to maintain its aggressive interest rate stance. Consequently, the Greenback lost its footing while demand for the Japanese Yen remained firm across global markets. Analysts suggest that the narrowing yield gap between the US and Japan is providing a tailwind for the Yen's recovery. Market focus now shifts to upcoming central bank communications to gauge the future trajectory of the currency pair.