Heightened US sanctions on Iran drive safe-haven flows into the dollar, lifting USD/JPY past 159.00 amid geopolitical tensions.
The US dollar strengthened against the Japanese yen, with USD/JPY climbing above 159.00 as fresh US sanctions on Iran fueled demand for the greenback. The move follows comments from US Treasury Secretary Scott Bessent, signaling a sharp escalation in restrictions targeting Iran, which has bolstered safe-haven flows into the dollar.
The pair remains below the 164.00 level, where the Bank of Japan intervened in late July to curb the yen’s decline. BoJ Governor Kazuo Ueda recently highlighted Middle East risks as a key factor for inflation and currency stability, suggesting further geopolitical tensions could support the yen over the medium term.
Technical indicators show USD/JPY holding a mild bullish bias, trading above its 100- and 20-period SMAs on the 4-hour chart. Resistance levels are seen at 159.16 and 159.22, with the RSI at 53, indicating room for further upside without overbought conditions.