Cooling US producer prices and steady Fed rate expectations keep the pair in a tight range ahead of Japan’s Q2 GDP data.
The USD/JPY pair remains rangebound near 159.53, reflecting balanced forces as cooling US inflation data tempers dollar strength. Soft producer price figures this week have eased concerns over persistent price pressures, though Fed tightening expectations remain intact, providing support for the greenback.
The yen awaits Friday’s Japanese Q2 GDP release, with economists forecasting a third consecutive quarter of expansion. Solid consumption and capital spending are expected to underpin growth, potentially offering the yen a directional cue. Meanwhile, geopolitical uncertainty in the Middle East continues to cap risk appetite, limiting sharp moves in either direction.
Technically, the pair holds above its 20-period SMA at 159.30, with the RSI at 60.07 signaling modest bullish momentum. Resistance lies at the 100-period SMA near 160.43, while initial support is seen at 159.48.