The pair remains near multi-decade highs as traders await key inflation data from Tokyo, with softer US consumer confidence capping USD gains.
USD/JPY traded slightly higher near 163.80 on Tuesday, holding close to multi-decade highs as the Japanese Yen (JPY) faced weak demand. The pair’s modest advance followed softer US consumer confidence data, which limited the US Dollar’s (USD) upward momentum.
Markets are focused on upcoming Tokyo inflation figures, which could influence expectations for Bank of Japan (BoJ) policy. The yen has struggled amid diverging monetary policy outlooks between the US Federal Reserve and the BoJ, keeping the pair elevated.
No immediate market reaction was reported, with traders awaiting further data before repositioning.