Japanese Yen Consolidates Amid Weak US Data and Market Sentiment Shift

The Japanese Yen has been consolidating in recent trading sessions as investors weigh weak US data and shifting market sentiment.

Despite broad US Dollar weakness, USD/JPY trades around 157.65 on Wednesday, little changed from the day before.

The US private sector added only 44K jobs in July, falling short of market expectations of 70K, while the Institute for Supply Management's Services Purchasing Managers Index came in at 54.1, slightly below consensus estimates.

These weaker-than-expected releases have put further pressure on the Greenback, which is also being weighed down by reports that the US Treasury Department has lifted selected Iran-related sanctions.

Meanwhile, investors are keeping a close eye on progress in US-Iran negotiations, as well as underlying support for the Japanese Yen from Bank of Japan expectations.