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Yen struggles to draw demand as USD/JPY nears 163.80

USD/JPY was hovering around 163.80 after the Conference Board Consumer Confidence Index fell to 90.8 in July from 92.2 in June, while investors looked ahead to Japan’s CPI and unemployment data.

Reported · Written up by our desk · Major Pairs

USD/JPY edged slightly higher near 163.80 on Tuesday, with the yen failing to attract stronger demand and the pair staying close to recent multi-decade highs, according to FXStreet. The dollar’s advance was capped somewhat by softer US consumer confidence data, but the broader upward bias remained intact.

The Conference Board’s 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 straight month to 114.9, while the Expectations Index stayed at 74.7, pointing to continued caution among US households regarding business and labor market conditions.

Geopolitical uncertainty also remained in focus, FXStreet noted, after President Donald Trump said Washington has a “very strong position” with Iran and indicated he would prefer to avoid attacking power plants and bridges while reserving the ability to strike additional targets if an agreement is not reached.

Market participants are now turning to upcoming Tokyo inflation and employment figures, FXStreet reported. Tokyo CPI excluding fresh food is expected to rise to 1.7% year over year in July from 1.6%, Japan’s unemployment rate is forecast to hold at 2.5%, and technicals showed USD/JPY trading around 163.85 while holding above key moving averages.

Latest closeUSD/JPY 163.85 ▲0.1%

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