The yen briefly strengthened on softer US inflation data but reversed all gains, leaving USD/JPY unchanged at 162.11.
USD/JPY traded in a tight range Wednesday, erasing early gains after a softer-than-expected US Producer Price Index (PPI) report. The pair fell to 161.90 following the data but rebounded to 162.11, matching its opening level.
June PPI declined 0.3% month-over-month and slowed to 5.5% year-over-year, below the 6.2% consensus. The yen initially rallied but failed to sustain momentum, reflecting broader consolidation in the 161.00-162.84 range established since late June.
Federal Reserve Chair Jerome Powell’s neutral testimony provided temporary support, but the yen’s inability to hold gains underscores persistent dollar strength amid cooling but sticky inflation.