The struggle continues for the yen currency, even if market players are feeling more optimistic about the US-Iran situation.
With each passing day the war continues, the damage to the Japanese economy continues to stack up
That especially as the Strait of Hormuz remains in de facto closure. It’s hard to remember the last time the yen was this beaten up in a time of a geopolitical crisis. But alas, it is what it is now as all the fundamental factors are pretty much working against the currency.
Since Japan’s ministry of finance took a step back after the first week of May, USD/JPY has been on a slow grind higher and has recovered over 400 pips from the lows earlier this month. That’s a damning message to Tokyo officials, who must know that their limits are being tested here. However, their hands are a bit tied for a couple of reasons.