USD/JPY Consolidates Below 160.00 as US-Iran Talks and Weak PMIs Drive FX

USD/JPY is consolidating just below the psychologically significant 160.00 level during European trading hours, as markets digest a mix of geopolitical developments and disappointing PMI data across Europe. UK flash services PMI came in at 51.2, well below the 53.0 consensus, weighing on GBP sentiment. Eurozone services PMI printed at 50.1 versus 51.1 expected, barely holding in expansion territory, while French services PMI fell deeper into contraction at 48.3 versus 49.0 forecast. The standout upside surprise was Germany's manufacturing PMI at 51.7, comfortably beating the 49.5 expectation and marking a return to expansion. Geopolitical focus has shifted to US-Iran negotiations after reports that Iran's Supreme Leader agreed to engage with the US, though Israeli officials cautioned that talks are unlikely to succeed despite Trump's desire for a deal. The mixed risk backdrop is keeping markets in a holding pattern. Traders should watch 160.00 as key resistance for USD/JPY and monitor geopolitical headlines for directional catalysts across major pairs.