USD/JPY Fails to Budge on Soft US Data

The Japanese Yen held steady against the US Dollar on Friday, despite soft US data and a weak consumer sentiment reading. The pair USD/JPY hovered around 159.40, with little change from the day's start.

A preliminary Consumer Sentiment Index from the University of Michigan fell to 51 in August, below the expected 54.5. This comes on the heels of cooler inflation and a weak Retail Sales report earlier this week.

The soft US data has taken some steam out of the Dollar, with the Dollar Index (DXY) lower on the day. However, the USD/JPY pair remains caught between a soft Dollar and a soft Yen, making it difficult to predict which direction the exchange rate will take.