Geopolitical de-escalation between the US and Iran reduces safe-haven demand for the dollar, capping USD/JPY movement.
The USD/JPY pair remains nearly unchanged at 156.40 as easing Middle East tensions diminish the US dollar’s appeal as a safe-haven asset. Reports suggest progress in US-Iran negotiations to resolve a prolonged standoff, reducing market volatility.
Earlier sessions saw the pair fluctuate within a tight range, reflecting subdued investor reaction to geopolitical developments. The lack of significant movement contrasts with prior weeks, when escalating tensions drove demand for the dollar.
Markets are monitoring further diplomatic updates, though immediate trading impact remains limited.