The currency pair rises 0.25% to 160.25-160.30 as Middle East tensions and Fed policy expectations weigh on the JPY.
The USD/JPY pair climbed to 160.25-160.30 during Asian trading, up nearly 0.25% for the day, as geopolitical tensions in the Middle East and hawkish Federal Reserve expectations bolstered the USD. Mixed signals from the U.S. and Iran over a potential peace deal capped recent optimism, pressuring the JPY.
The pair remains near its highest levels since late April, supported by persistent uncertainties and Fed rate cut delays. However, speculation about potential Japanese intervention to support the JPY may limit further gains. Investors are also cautious ahead of the Bank of Japan’s monetary policy meeting on June 15-16.
Technical indicators suggest bullish momentum, with the pair holding above its 100-period SMA on the 4-hour chart. Mixed signals from momentum indicators, however, warrant caution for traders eyeing further upside.