Monday's US session was defined by a sharp pivot in geopolitical sentiment after President Donald Trump announced he was delaying planned military strikes against Iran following requests from Gulf allies, including Saudi Arabia, Qatar and the UAE, who argued that a diplomatic resolution was within reach. The news provided a meaningful boost to risk assets, weighed on the US dollar and pulled oil prices lower as markets repriced the immediate probability of a military escalation.
The American currency is losing ground as traders ignore rising oil markets.
US dollar continues to put pressure on other currencies to kick off the week, as rates in American continue to climb.
USD/JPY climbed to 158.93 on Monday, marking the yen's sixth consecutive session of decline. The Japanese currency is under pressure from a stronger dollar amid rising expectations that the Federal Reserve may raise interest rates this year to curb inflation.
Intraday analysis covering USDJPY, USDCAD, and GER 40 peaks lower, focusing on short-term price action, key support and resistance levels, and intraday market momentum across major instruments. USDJPY continues bull run The Dollar edges higher after a bullish continuation saw over 300 pips added to the value of the pair.
Exchange Rates UK Research's latest May 2026 survey of major investment banks shows the USD/JPY exchange rate is expected to gradually decline from current levels near 159.00 towards the 145–150 region through 2027, signalling expectations for a broader Japanese yen recovery after several years of sustained weakness. The latest poll.
After suspected intervention activity from Japanese authorities created havoc with traditional market relationships the prior week, USD/JPY reverted to trading primarily off moves in the front-end of the US Treasury curve over the past five trading days. As shown in the rolling correlation matrix below, short-dated US yields once again emerged as the standout driver of the pair, providing a far better read on what matters and what does not heading into the new week.
Rising demand for safe-haven assets provided support to the American currency.
USDJPY managed to hit the target of 157.50-70 and above. As we see from the chart, the market still has the chance for a further advance as this zone could control the market movement between support 155.00 and .resistance 160.20-60 Above 160.60 more advance is likely with resistance at 161.95.
USD/JPY Price Forecast: Extends winning streak and stabilizes above 20-day EMA
USD/JPY is once again approaching territory that could force Japanese authorities into difficult decisions. The pair surged through 158 on Friday as broad Dollar strength combined with another sharp rise in US Treasury yields.
Looking at the 4-hour chart, the pair spiked above the 50% Fib retracement level of the downward move from the 160.72 swing high to the 155.03 low. However, the bears remained active near the 100 simple moving average (red, 4-hour).