Japan Warns of Yen, Iran Conflict Raises Safe Havens
USD/JPY maintained its gains and moved above 157.00, near its monthly high, in Asian trading on Tuesday. Technically, the short-term bias remains bullish as long as the price remains above dynamic support areas (including short-term moving averages) and the previous breakout area.
The pair's gains were primarily supported by safe-haven demand for the US dollar amid growing concerns about escalating conflict in the Middle East. When geopolitical uncertainty rises, investors tend to increase exposure to defensive assets and the USD once again plays a dominant role in these hedging flows.
In Japan, the weakening yen has also raised the government's vigilance. Japanese Finance Minister Satsuki Katayama previously emphasized that authorities are monitoring yen movements "with a sense of urgency," indirectly signaling that intervention could be an option if movements are deemed excessive.
Looking ahead, the market awaits catalysts from comments by Fed officials (including John Williams, Jeffrey Schmid, and Neel Kashkari) that could influence US interest rate expectations and the direction of the dollar. If the tone of the statement is hawkish, USD/JPY has a chance of remaining strong; conversely, signals of easing could trigger a correction from the 157 area. (Cp)
Source: Newsmaker.id
