USD/JPY edged up to around 163.80 on Tuesday and stayed close to multi-decade highs, with the JPY still failing to draw demand. The move came as softer US data tempered the US Dollar’s momentum, yet the pair kept a mild upward bias.
US Economic Indicators and Geopolitical Developments
The Conference Board Consumer Confidence Index slipped to 90.8 in July from an upwardly revised 92.2 in June, while the Present Situation Index extended its decline for a third month to 114.9 and the Expectations Index held at 74.7. Geopolitical uncertainty remained in view after US President Donald Trump said Washington had a “very strong position” with Iran and described Pickaxe Mountain as “not a big problem”; he said he would prefer to avoid striking power plants and bridges, but left open further action if no agreement is reached.
Japanese Economic Data and Technical Outlook
Markets are also pricing upcoming Japan data, with Tokyo CPI ex fresh food seen at 1.7% YoY versus 1.6%, headline CPI previously at 1.7%, core-core CPI previously at 1.9%, and the Unemployment Rate forecast at 2.5%; technically, the pair traded at 163.85, holding above the 20-period SMA at 163.76 and the 100-period SMA at 162.65, with RSI at 60.60, resistance at 163.96, and supports at 163.76, 163.64 and 163.59.
