Analyst: The dollar holds steady as the yen falls, with the market awaiting the release of US CPI data

On February 12, Jin Shi Data reported that the US dollar was basically stable against other major currencies on Wednesday as traders awaited US inflation data. However, Federal Reserve Chairman Powell's speech boosted US Treasury yields and provided some support for the US dollar against the Japanese yen. The USD/JPY pair pumped about 0.7% intraday and broke through its 200-day moving average. Nick Twidale, Chief Market Analyst at ATFX Global, said, 'The yen has always been sensitive to US dollar yields.' He pointed out that the breakthrough of the 200-day moving average in the subdued trading before the release of US CPI data may have exaggerated the yen's decline. Jane Foley, Senior Forex Strategist at Rabobank, also said that the yen may be affected by profit-taking as it has been the best-performing major currency against the US dollar since 2025.