Yen Holds Gains as Soft CPI Print Keeps Fed's Next Move in Question

The Japanese yen has maintained its modest gains against the US dollar after July's Consumer Price Index came in at just 0.1% month-over-month.

This soft CPI reading gives traders pause about the Federal Reserve's next move, and keeps the USD/JPY pair hovering around 159 per dollar.

The intervention that dragged the yen back from multi-decade weakness was massive - roughly ¥8.45 trillion (about $53 billion) in coordinated action between the US and Japan.

However, a hot inflation print would have given dollar bulls another reason to push USD/JPY higher, potentially unwinding more of the intervention's effect.