Yen Weakens Despite Strong GDP, USD/JPY Near 160.30

The Japanese yen edged lower on Tuesday, failing to gain support from better-than-expected domestic GDP data. USD/JPY traded around the 160.30 level during the session, reflecting cautious positioning ahead of upcoming US inflation reports.

Market participants remain focused on the Federal Reserve’s next policy move, with the US inflation figures likely to provide further direction. The yen’s weakness underscores persistent rate differentials between Japan and the US, even as Japan’s economic data shows relative strength.

Traders are now awaiting fresh catalysts from the US data release, which could drive the next leg in the pair.