The USD/JPY pair traded in a narrow range around 159.30 yen on Tuesday, showing little movement amid thin trading conditions caused by the Mountain Day holiday in Japan. This followed nearly 1% gains recorded the previous day.
According to FX Street, the pair’s subdued activity during Asian hours reflects the holiday-thinned market, with traders cautious after the sharp rise. The limited volatility contrasts with the strong momentum seen earlier in the week.
As Japanese markets remain closed for the holiday, FX participants are likely awaiting a return to normal volumes before making further moves, keeping USD/JPY’s near-term direction uncertain.