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Chart - Courtesy Trading View
Data released by the Bureau of Labour Statistics earlier on Wednesday showed that the headline US CPI remained flat in July against the 0.2% rise anticipated.
The yearly rate decelerated to 8.5% during the reported month, also missing estimates pointing to a fall to 8.7% from the 9.1% in June.
Further, core inflation came in at 0.3% MoM and held steady at a 5.9% YoY rate vs 0.5% and 6.1% expected, respectively.
A weaker US CPI report pushed back expectations for a larger Fed rate hike and weighed on the USD.
USD/JPY plunged back into the daily cloud, hit weekly low at 132.66 before paring some losses to trade at 133.25 at around 13:12 GMT.
