JPY Holds Firm as Markets Await Tokyo Inflation Data
The Japanese Yen has maintained its strength against the US Dollar, despite softer US consumer confidence figures. The USD/JPY pair remains near the 163.80 area on Tuesday, holding close to multi-decade highs. This stability is likely due in part to the upcoming release of Tokyo inflation and employment data.
The Conference Board Consumer Confidence Index declined to 90.8 in July from an upwardly revised 92.2 in June. US President Donald Trump said he would prefer to avoid attacking power plants and bridges, but maintained that the US could strike additional targets if Tehran fails to reach a deal with Iran.
Investors are now awaiting Tokyo inflation and employment figures. Tokyo core CPI is expected to rise to 1.7% YoY in July from 1.6%, while headline inflation previously stood at 1.7%. Japan's Unemployment Rate is forecast to remain unchanged at 2.5%.
From a technical perspective, the USD/JPY pair retains a bullish near-term bias as it holds above both the 20-period Simple Moving Average and the 100-period SMA.