US business activity expansion and resilient private payrolls support the dollar, but caution persists over labor market momentum.
The USD/JPY pair remains near 161.52, trading in a tight range as investors parse mixed US economic signals. June’s S&P Global PMI rose to 55.7, exceeding the 54.8 forecast, while ADP’s 4-week average employment change improved to 30.75K from 26.5K, signaling ongoing hiring strength.
Despite the upbeat data, softer employment details in the PMI survey tempered optimism. Traders are assessing whether the labor market is cooling, which could influence Federal Reserve policy expectations. Geopolitical risks, including US-Iran tensions, also kept sentiment cautious.
Technically, the pair holds above key moving averages, with the RSI at 61 indicating a bullish bias. Nearby supports suggest dip-buying interest remains intact.