The Japanese Yen (JPY) remained under pressure on Tuesday, with USD/JPY trading slightly higher near the 163.80 area, close to multi-decade highs, as the Yen struggled to attract demand ahead of key Tokyo inflation and employment data releases [1]. The US Dollar's advance was limited by softer US consumer confidence data, as the Conference Board Consumer Confidence Index declined to 90.8 in July from an upwardly revised 92.2 in June. The Present Situation Index fell for a third consecutive month to 114.9, while the Expectations Index remained unchanged at 74.7, indicating ongoing caution among US households regarding business and labor market conditions [1].
Geopolitical uncertainty also remained in focus, with US President Donald Trump stating that Washington holds a 'very strong position' with Iran and downplaying the significance of Pickaxe Mountain as 'not a big problem.' Trump emphasized a preference to avoid attacking power plants and bridges but maintained that the US could strike additional targets if Tehran fails to reach an agreement [1].
Market participants are now awaiting the release of Tokyo inflation and employment figures. Tokyo CPI excluding fresh food is expected to accelerate to 1.7% year-over-year in July from 1.6%, while headline inflation previously stood at 1.7%. CPI excluding food and energy was previously 1.9%, and Japan’s Unemployment Rate is forecast to remain unchanged at 2.5% [1].
From a technical perspective, USD/JPY trades at 163.85, maintaining a bullish near-term bias as it holds above both the 20-period Simple Moving Average (SMA) at 163.76 and the 100-period SMA at 162.65. The Relative Strength Index (RSI) at 60.60 has eased from overbought territory but still signals constructive momentum, suggesting that dips are likely to attract buyers while the price remains supported by these averages. Immediate resistance is noted at 163.96, with further upside possible if this level is breached, while initial support is found at 163.76, followed by 163.64 and 163.59. A deeper pullback toward the 100-period SMA at 162.65 would be required to challenge the prevailing bullish structure [1].
CONCLUSION
The Japanese Yen continues to trade near multi-decade lows against the US Dollar as markets await key Tokyo inflation and employment data. Technical indicators suggest a bullish bias for USD/JPY, with dips likely to attract buyers unless significant support levels are breached. Market sentiment remains cautious amid softer US consumer confidence and ongoing geopolitical uncertainties.