Our previous outlook for USDJPY still stands as the pair slowly marches towards the resistance zone at 160.20-60. Traders are watching the resistance zone of 160.20-60 as the last time the market was here, the BoJ threatened to intervention to support the Yen.
While no one knows when a truce in the Gulf will truly hold, allowing energy supplies to transit the Strait of Hormuz freely, the uncertainty continues to expose a major vulnerability for Japan. As a significant net energy importer, higher prices threaten to worsen both its terms of trade and current account position, creating a headwind for the yen.
The strong rally in the oil markets provided support to the American currency.
Japanese Yen slips as Middle East tensions lift USD/JPY ahead data
USD/JPY continued its advance on Monday, reaching 159.46. The Japanese yen therefore remains under pressure near the key 160.00 level against the US dollar.
For a few days in early May, it looked as though Japan had successfully pushed back against Yen weakness. The Ministry of Finance has now confirmed that impression came at a hefty cost.
Intraday analysis covering USDJPY falls lower, EURCAD price analysis, and US 30, highlighting recent price movements, key technical levels, and short-term momentum shifts across major markets. USDJPY falls lower The sell-off in the dollar market continued as the Yen fell towards the 159.00 level.
USD/JPY Price Forecast: Yen languishes amid growing BoJ rate hike uncertainty
Current Setup and Live Chart The USD/JPY has found a top at the critical psychological zone around 159–160. Price hit this zone a few weeks back, and the pair received intervention from Japanese financial authorities.
Tariff refunds may ease pressure on U.S. businesses and households, but weak growth, lower savings, and sticky inflation keep the U.S. dollar outlook uncertain across USDJPY, EURUSD, and GBPUSD.
The American currency is losing ground amid falling demand for safe-haven assets.
USD/JPY Price Forecast: Sees more upside towards 160.70