USD JPY

CPI surprises to the upside again in Japan, reviving speculation that the BOJ may not be able to sit on its hands much longer. With geopolitical tensions and oil prices also driving price action, USD/JPY continues to grind higher.

USD/JPY consolidates ahead of the Federal Reserve rate decision as the central bank is widely expected to retain the current policy.

Tomorrow brings a vitally important Federal Reserve rate decision and the driver will probably be the bank’s dot plot matrix as the Fed updates their projections for the rest of the year.

USD/JPY continues to coil within the May range with price poised for a breakout. Battle lines drawn on the short-term technical charts heading into the Fed.

USD/JPY falls after the BoJ leaves rates unchanged & on safe-haven flows. DAX drops as the Israel–Iran conflict continues, ZEW economic sentiment data is due.

The Japanese yen slumped on Monday as risk sentiment improved on Israel–Iran ceasefire hopes. With the BOJ expected to hold steady, traders are watching USD/JPY and AUD/JPY for potential bullish breakouts.

USD/JPY is in the spotlight ahead of the Wednesday FOMC rate decision, although Yen-weakness has been more noticeable in both EUR/JPY and GBP/JPY of late.

Oil eases as Middle East tensions remain in focus. USD/JPY unchanged ahead of a big week for central banks.

Despite escalating conflict in the Middle East, USD/JPY has rallied as traders prioritise what higher oil prices mean for the Fed’s policy outlook over traditional haven flows. With yield differentials regaining influence, guidance from Powell and Ueda could prove decisive in the days ahead.

The US Dollar broke down to a fresh three-year low this week, and EUR/USD broke out. The big question now is whether the Fed lays the groundwork for rate cuts in the second-half of the year.

Soaring geopolitical tensions and a rapid narrowing in U.S.-Japan yield spreads have combined to send USD/JPY sharply lower in Asia, breaking trend support and triggering fresh bearish signals. With the risk of further escalation growing, could a deeper carry trade unwind now be on the cards?