USD/JPY rallied above 150.00, BBH's FX analysts report.

BoJ normalization cycle to continue

"Tokyo February CPI inflation cools more than anticipated and supports the case for a gradual Bank of Japan normalization cycle. Headline CPI and core ex-fresh food inflation eased to 2.9% y/y (consensus: 3.2%, prior: 3.4%) and 2.2% y/y (consensus: 2.3%, prior: 2.5%). Core ex-fresh food and energy remained at 1.9% y/y (consensus: 2.0%, prior: 1.9%)."

"The market continues to imply about 50bps of BOJ policy rate hikes over the next two years to 1.00% which limits JPY upside."