USD/JPY: Softer tone with intervention risk – Rabobank

FXStreet Insights Team FXStreet

Rabobank’s Benjamin Picton notes that despite supportive Japanese fiscal policy and expectations for loose Bank of Japan settings, the Japanese Yen has firmed slightly, leaving USD/JPY trading softer. Picton highlights comments from Finance Minister Katayama about close coordination with the US Treasury and readiness to stabilise markets, alongside underperforming 10-year JGBs and a steepening 2s10s curve.

Takaichi's election and market implications

"Despite this cocktail of accommodative policy, USDJPY is dealing a little softer as Finance Minister Katayama indicated that she had been in close contact with US Treasury Secretary Bessent regarding stabilisation of the exchange rate."

"Katayama also said that she is prepared to take measures to stabilize markets today if necessary."

"Beyond the immediate implications for JGBs, the Japanese Yen and – by extension – the Yen carry trade, this is a momentous development geopolitically."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD stays firm near 1.3350 amid easing Mideast tensions

GBP/USD builds on Friday's modest bounce from a three-week low and gains strong follow-through positive traction at the start of a new week on Monday. This marks the second straight day of gains, with the major trading near 1.3350 in European trading amid a pause in the Middle East conflict and a broadly weaker US Dollar. Traders brace for the Fed and BoE policy announcements later in the week.

EUR/USD holds gains near 1.1400 as USD slips on Iran diplomacy hopes

EUR/USD holds sizeable gains near the 1.1400 mark in the European session on Monday. The intraday strength is sponsored by a broadly weaker US Dollar, weighed down by renewed optimism over a diplomatic resolution to end a five-month-old US-Iran war.

Gold stands firm on US-Iran diplomacy hopes, reduced Fed hike bets; bulls lack conviction

Gold (XAU/USD) continues with its struggle to capitalize on a modest gap-up opening beyond the $4,100 mark through the early European session on Monday as bulls seem hesitant ahead of the crucial FOMC meeting this week. Heading into the key central bank event, reviving hopes for a diplomatic resolution to end a five-month-old US-Iran war led to a steep fall in crude oil prices.

Bitcoin holds above key support amid ETF inflows, US-Iran bombing pause

Bitcoin (BTC) holds above the key 200-week Simple Moving Average (SMA) around $63,500, having posted four consecutive weeks of gains. Institutional demand shows mild signs of improvement with spot Exchange Traded Funds (ETFs) posting inflows for a third consecutive week.

Bitcoin Price Prediction: BTC holds above key support amid ETF inflows, US-Iran bombing pause

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.