Strong U.S. economic data will put a brake on the dollar's downward trend, which was triggered by the Fed minutes. The data could re-ignite expectations the Fed will raise interest rates at least twice this year.

Strong US economic data will put a brake on the dollar's downward trend, which was triggered by the Fed minutes. The data could re-ignite expectations the Fed will raise interest rates at least twice this year.

Japanese investors are buying overseas assets, seeking higher yields than at home. This trend will remain in the first half and be negative for the yen.

Market players had been refraining from selling the yen before the release of the CPI data. But now, they know that the BOJ is unlikely to change their current monetary policy for a while, and the United States continues to have higher interest rates than Japan.

The dollar got some support from the Ministry of Finance's survey, as it ignited concerns about a possible downward revision.

While the US Fed appears to have shortened its commitment to rate hikes by deleting the word 'measured', the US monetary authority still implies there are good chances of more rate hikes beyond the March meeting.