Japanese Yen futures experienced their largest percentage pullback since December, falling over 1% during the session. The decline followed the release of Japanese economic data which showed January CPI moderating to 2%, lower than the 2.2% expected, while December industrial production was stronger than anticipated at -0.1%. The primary driver of the weakness was a rally in the U.S. dollar following the nomination of Kevin Warsh as the next Federal Reserve chair. Market participants viewed the nomination as a sign of continued central bank credibility, leading to a stronger U.S. dollar and subsequent pressure on the yen. The March Japanese Yen futures contract reached a session low of 64.85 as the market adjusted to the shifting interest rate outlook in the U.S.