Japanese Yen falls near multi-decade lows

USD/JPY trades higher as the US Dollar stays supported by geopolitical risk and caution ahead of the FOMC Minutes.
Trump’s comments that the Iran memorandum was “over” boosted risk aversion and helped lift the Greenback.
Japan’s threat of intervention remains a key risk for USD/JPY.

Agustin Wazne FXStreet

USD/JPY trades higher near 162.50 on Wednesday, after nearing a four-decade high earlier in the day, as the US Dollar (USD) remains supported by geopolitical risk and caution ahead of the Federal Open Market Committee (FOMC) Minutes. The Japanese Yen (JPY) remains under pressure near multi-decade lows, keeping traders alert to possible intervention from Japanese authorities.

Support for the Greenback increased after United States (US) President Donald Trump announced that the interim memorandum of understanding with Iran was "over," indicating his unwillingness to engage with Tehran. This statement boosted safe-haven demand for the USD and caused a rise in oil prices, which heightens concerns over inflation and global risk sentiment.

The focus now shifts to the FOMC Minutes from the meeting held on June 16-17, which was the first under Fed Chair Kevin Warsh. If the tone is hawkish, it could reinforce the view that US interest rates may remain elevated for an extended period, which would support the Dollar and keep USD/JPY near recent highs.

Short-term technical analysis:

On the 4-hour chart, USD/JPY trades at 162.53, maintaining a bullish near-term bias as it holds above both the 20-period Simple Moving Average (SMA) at 162.06 and the 100-period SMA at 161.63. The pair is also supported by a nearby horizontal floor at 162.47, while a firm Relative Strength Index (RSI) reading around 60 suggests steady upside momentum rather than overbought excess.

On the downside, initial support is seen at 162.47, followed by layered demand at 162.34 and 162.08, with the 20-period SMA at 162.06 and the 100-period SMA at 161.63 reinforcing the broader bullish structure. On the topside, immediate resistance is located at the horizontal line around 162.70, and a clear break above this barrier would open the way for an advance toward the recent four-decade high at $162.84 reached on July 1.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

Author

Agustin Wazne

FXStreet

Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.

GBP/USD treads water around 1.3360

GBP/USD alternates gains with losses around the 1.3360 zone on Wednesday. That said, Cable’s upside remains capped as markets stay cautious following the flare-up of tensions in the Middle East.

EUR/USD regains balance and revisits 1.1420

EUR/USD now manages to pick up pace and surpass the 1.1400 barrier on Wednesday. The pair now leaves behind Tuesday’s pullback in response to the US Dollar’s correction despite renewed safe-haven demand, all after President Trump said the MOU with Iran to end the conflict was "over".

Gold bounces, remains below $4,100

Gold turns lower on Wednesday and trades deep in negative territory, opening the door to another potential visit to the key $4,000 yardstick per troy ounce. The yellow metal’s decline follows a modest uptick in the US Dollar as tensions in the Middle East have resurfaced.

Pi Network crashes to a record low amid broader market stress

Pi Network (PI) price edges toward $0.1000 extending losses for the fifth straight day. Retail sentiment remains bearish as Open Interest and the funding rate decline. The technical outlook for PI is bearish as selling pressure mounts, despite oversold conditions.

2.50%: Why the Kiwi's first hike in three years is a wager on a number nobody can see

The Reserve Bank of New Zealand (RBNZ) raised the Official Cash Rate (OCR) by 25 basis points to 2.50% at 02:00 GMT on Wednesday, its first hike in three years and the moment the bank that cut deeper than any G10 peer last cycle turned to face the other way.

Bye, forward guidance: How to trade when central banks choose silence

Central banks have spent years telling markets what might come next. Now, traders face the possibility that they say a lot less. From the Federal Reserve to the European Central Bank and the Bank of England, policymakers are pushing back against forward guidance.