Japanese inflation remains above target

USD/JPY rose 0.1% to 140.17 after data showed Japan’s consumer price index rose 3.3% in June from a year earlier, remaining above the Bank of Japan‘s 2% target.

The Japanese central bank is expected to hold policy steady next week, including its yield control scheme, but it could revise up this year’s inflation forecast, pointing to future tightening.

Elsewhere, USD/CNY fell 0.1% to 7.1680, following reports indicating the country’s biggest state-owned banks had intervened in currency markets to support the yuan.