USD/JPY reached new highs at levels around 137 on Wednesday. Economists at Commerzbank expect the pair to extend its substantial rise.

Japan’s June inflation data unlikely to lift the yen

“It seems unlikely that the June inflation data, due for publication tomorrow, will change this decade-long phenomenon.”

“I merely want to point out that the causes of lowflation in Japan were clearly different from those in the rest of the G10. And as a result, the fact that lowflation is over in most countries is not a reason to assume that the same will happen in Japan.”