Yen Holds Firm Ahead of Tokyo Inflation Data

The Japanese Yen (JPY) has maintained its stability as markets await Tokyo inflation and employment data. The USD/JPY pair trades near the 163.80 area, remaining close to multi-decade highs despite softer US consumer confidence data.

The Conference Board Consumer Confidence Index declined to 90.8 in July from an upwardly revised 92.2 in June, limiting the US Dollar's advance. The Present Situation Index fell for a third consecutive month to 114.9, while the Expectations Index remained unchanged at 74.7.

US President Donald Trump said Washington has a “very strong position” with Iran and described Pickaxe Mountain as “not a big problem.” He added that he would prefer to avoid attacking power plants and bridges and said he was “not looking to do that,” although he maintained that the US could strike additional targets if Tehran fails to reach an agreement.

Investors are now focused on Tokyo inflation data, which is expected to accelerate to 1.7% YoY in July from 1.6%. Japan's Unemployment Rate is forecast to remain unchanged at 2.5%.