The Japanese Yen remains under pressure against a rebounding US Dollar amid geopolitical risks and Fed rate hike expectations.
The USD/JPY pair traded higher in early Asian trade, hovering near 159.00 as the Japanese Yen faced downward pressure. The US Dollar regained strength after retreating to a one-week low, supported by geopolitical tensions in the Middle East and hawkish Federal Reserve expectations.
Spot prices remain close to a three-week high reached last Thursday, driven by concerns over energy supply disruptions and Japan’s economic outlook. Meanwhile, optimism over a potential US-Iran deal was tempered by reports of US strikes in southern Iran, reinforcing the Dollar’s safe-haven appeal.
Market participants remain cautious amid speculation that Japanese authorities could intervene to support the Yen, capping aggressive bullish bets on the USD/JPY pair.