USD/JPY weakens as small business optimism misses expectations

USD/JPY slipped 0.15% to 161.20 following the release of disappointing US small business data. The NFIB Small Business Optimism Index came in at 98.6 for June, slightly below the expected 98.7 and down from May's 98.8 reading. The decline was primarily driven by a substantial increase in excess inventories, while the Uncertainty Index dropped five points to 89. Notably, 19% of small business owners cited taxes as their top concern, up from May's figure. This data adds to recent mixed economic signals from the US, potentially influencing the Federal Reserve's monetary policy stance. Technical indicators suggest immediate support at 161.00, with resistance at 161.50. The softer business sentiment could weigh on dollar strength in the near term, particularly if upcoming economic releases continue to disappoint market expectations.