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USD/JPY steadies near 159.40 as US data softens the dollar
The University of Michigan preliminary Consumer Sentiment Index fell to 51 in August from 55.2, dragging the Expectations component to 50.6 and keeping USD/JPY range-bound.
USD/JPY was trading near 159.40 with little change on the day, as weaker US data trimmed support for the dollar but did not push the yen meaningfully lower, according to FXStreet.
The University of Michigan preliminary Consumer Sentiment Index dropped to 51 in August from 55.2, well below the 54.5 expected, and the Expectations component fell to 50.6. FXStreet linked the broader pattern of softer US releases over the week, including cooler inflation and a weak Retail Sales report, to reduced momentum in the US dollar, with the Dollar Index (DXY) lower on the day.
FXStreet said the recent boost from record joint US-Japan intervention in late July and early August has faded, and with no follow-up from Tokyo, speculators have returned to selling the Japanese yen. That left USD/JPY caught between a softer dollar and a softer yen.
On the charts, FXStreet cited USD/JPY holding above the 20-period simple moving average near 159.33 but capped below the 100-period SMA around 160.20, with resistance near 159.39 and 159.58 and support clustered around 159.33, then 159.20 and 159.10.
Latest closeUSD/JPY 159.31 ▼0.1%|Dollar index 99.64 ▼0.3%