The data wasn't necessarily bad. It just assisted the bit of dollar selling that's been going on that originated last night.

Dollar buyers ran out of gas once we couldn't break through $1.2750 and 106 in dollar/yen and as a consequence we started technically trading off those levels.

Dollar buyers ran out of gas once we couldn't break through $1.2750 and 106 in dollar/yen and as a consequence we started technically trading off those levels,

The numbers were obviously better than expected. It's possible we could see a little further dollar buying.

The euro/dollar hasn't technically broken out, but it seems to have broken the recent pattern,

Market players had been refraining from selling the yen before the release of the CPI data. But now, they know that the BOJ is unlikely to change their current monetary policy for a while, and the United States continues to have higher interest rates than Japan.