USD/JPY holds modest gains near the 159.60s on Tuesday, edging higher on the day.
The pair has clawed back ground after a recent sharp pullback and is grinding back toward the upper end of its recent range
The US Dollar (USD) is keeping a mild bid as tensions around the Strait of Hormuz keep a safe-haven premium in the currency. That flow is favoring the Greenback over the Japanese Yen (JPY), keeping USD/JPY supported even as geopolitical risk runs through the headlines. US President Donald Trump hardened the tone in a social media post, saying there are no talks or conversations scheduled with Iran and that the US naval blockade remains in full force.
He also claimed the Strait of Hormuz is “open and operating” and that all water mines had been removed or detonated, comments that come as Tehran insists the waterway stays shut until Washington meets its conditions. On the data front, the picture was mixed. US Building Permits for July jumped to 1.443 million, beating expectations, but Housing Starts slipped to 1.239 million, missing forecasts and falling from the prior month.