Japanese Yen sticks to modest losses; USD/JPY looks to build on strength beyond 159.50
- USD/JPY gains positive traction for the second straight day, though bulls seem non-committal.
- Rising geopolitical tensions benefit the USD’s reserve currency status and support spot prices.
- The BoJ’s hawkish outlook and intervention fears support the JPY, capping gains for the major.
The USD/JPY pair attracts some follow-through buying for the second straight day and climbs to mid-159.00s during the Asian session on Monday. Spot prices remain close to the highest level since July 2024, touched last week, though intervention fears might cap further gains.
Japan’s Vice Finance Minister for International Affairs and top foreign exchange official, Atsushi Mimura, said earlier today that the government is considering taking measures on all fronts in foreign exchange (FX) volatility. Furthermore, the Bank of Japan's (BoJ) hawkish outlook might hold back traders from placing aggressive bearish bets around the Japanese Yen (JPY) and cap gains for the USD/JPY pair.
In fact, BoJ Governor Kazuo Ueda reiterated last week that the central bank will continue to raise the policy rate if the economy and prices move in line with the forecast, in accordance with improvements in the economy and prices. Ueda added that the underlying inflation is expected to be at a level in line with the price target in the second half of the projection period and that real interest rates are at significantly low levels.
In contrast, the US Federal Reserve (Fed) projected one interest rate reduction this year and one in 2027. This might contribute to keeping a lid on the USD/JPY pair. Meanwhile, investors remain concerned that the war-driven surge in Crude Oil prices could weaken Japan's economy. This is seen as a key factor behind the JPY's relative underperformance against the US Dollar (USD) and supports the USD/JPY pair.
Adding to this, a further escalation of tensions in the Middle East continues to underpin the USD's status as the global reserve currency. In the latest developments, US President Donald Trump issued a 48-hour deadline for Iran to reopen the Strait of Hormuz and threatened to target Iran's energy infrastructure if the demand is not met. This, in turn, might continue to act as a tailwind for the USD/JPY pair.
Japanese Yen Price Today
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.14% | 0.03% | 0.14% | -0.19% | 0.33% | 0.21% | 0.04% | |
| EUR | -0.14% | -0.11% | 0.02% | -0.33% | 0.31% | 0.05% | -0.11% | |
| GBP | -0.03% | 0.11% | 0.11% | -0.22% | 0.42% | 0.17% | -0.00% | |
| JPY | -0.14% | -0.02% | -0.11% | -0.32% | 0.18% | -0.02% | -0.11% | |
| CAD | 0.19% | 0.33% | 0.22% | 0.32% | 0.49% | 0.27% | 0.18% | |
| AUD | -0.33% | -0.31% | -0.42% | -0.18% | -0.49% | -0.25% | -0.29% | |
| NZD | -0.21% | -0.05% | -0.17% | 0.02% | -0.27% | 0.25% | -0.13% | |
| CHF | -0.04% | 0.11% | 0.00% | 0.11% | -0.18% | 0.29% | 0.13% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
