Tokyo’s upcoming August inflation data may influence the yen’s trajectory as traders await confirmation of a US-Iran ceasefire deal.
USD/JPY traded around 159.40 on Wednesday, supported by a stronger US dollar ahead of the Jackson Hole Symposium. The pair remained resilient despite reduced safe-haven demand for the yen amid reports of a potential US-Iran ceasefire, which could ease geopolitical tensions.
Tokyo’s August inflation report, due Thursday, is the yen’s immediate focus. Headline CPI and core inflation (excluding food and energy) are both expected to hold near 2% year-on-year, matching prior prints. Broader sentiment remains cautious pending confirmation of the ceasefire deal.
Technical analysis shows USD/JPY above key moving averages, with support at 159.16–159.26 and resistance near 159.43. The RSI at 56 suggests steady upward momentum without overbought conditions.