USD/JPY Slides as Soft US Data Dents Dollar Demand
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USD/JPY came under fresh selling pressure as a batch of softer-than-forecast US economic releases weighed on the dollar broadly. Traders trimmed long-dollar exposure, pushing the pair away from recent highs as yield differentials narrowed against the yen.
The move reflects growing sensitivity to US macro surprises ahead of the Fed's next policy signals. With incoming data increasingly shaping rate expectations, USD/JPY remains vulnerable to further downside if upcoming releases confirm a cooling US economy.
Near-term direction hinges on whether dollar bulls can stabilize above recent support, or whether continued data disappointments accelerate the unwind in USD/JPY longs.