Release Explanation: CPI measures the average price of a fixed market basket of goods and services purchased by consumers, and therefore give an overall read of inflationary pressures. It is the most widely used inflation indicator of central banks, institutions, and Governments. It is used to calculate cost of living numbers for Government programs. Each regional central bank will have their own CPI target rate, and each will differ in line with the way they individually want to control the aspects of their own economies. As the most important indicator of inflation, CPI figures are closely followed by the Bank of Japan. Rising Consumer Prices may prompt the BoJ to raise interest rates in order to manage inflation and slow economic growth.
Trade Desk Thoughts: Japans consumer prices have fallen to a flat 0.0 percent reading in February.  This is the second time in over a year that consumer prices have not risen as a result of the eminent recession that is entering the country. A drop in exports has forced corporations across Japan to cut workers and lower hours and pay, which in turn leaves less for consumers to spend. Japans policy makers are also bracing for another bout of deflation which has plagued the country off and on for the past two decades.
Forex Technical Reaction: The yen has fallen approximately 20 pips from the start of the new trading day. The pair is still well above the neutral pivot point and is currently at 98.56.