USD/JPY Gains as Tokyo CPI Data Looms, Yen's Appeal Fades

The Japanese Yen has slipped ahead of Tokyo's Consumer Price Index (CPI) data release on Thursday. The USD/JPY pair holds modest gains, supported by a broadly stronger US Dollar.

Easing Gulf tensions have reduced safe-haven demand for the Yen, weighing on its appeal even as broader sentiment remains cautious. The pair is trading around 159.40 on Wednesday, with the Dollar's strength ahead of the Jackson Hole Symposium keeping it underpinned.

Tokyo's August inflation report is expected to hold near 2% year-on-year for both the headline and ex-food-and-energy measures. This has led to a trimming of demand for traditional safe havens, including Gold, which has been sapped by reports of a US-Iran ceasefire that would reopen the Strait of Hormuz.