According to government data, core consumer prices in Tokyo rose 0.8% higher YoY in December. The figure came in better than the economists’ forecast, which was for an increase of 0.6% for the period.

Meanwhile, the Japanese yen continues to trade bearish against the US dollar as markets look forward to the signing of the phase one trade deal between the US and China. US Trade Representative Robert Lighthizer had previously raised the possibility of the deal being signed as soon as in early January.

Amid lack of volatility in the holiday season, the risk-on sentiment over trade deal optimism continues to dominate trends in the forex market, diminishing the safe haven appeal of the Japanese yen. At the time of writing, USD/JPY is trading at around 109.48.