Japanese Yen lower as US Dollar firms on heavier Iran sanctions
The US Dollar (USD) is grinding higher against the Japanese Yen (JPY) at the time of writing, with USD/JPY holding north of the 159.00 mark.
As the US Dollar (USD) climbs higher against the Japanese Yen (JPY), USD/JPY crosses above the 159.00 level, indicating a strengthening Greenback amid increased safe-haven demand following the United States' (US) Treasury Secretary Scott Bessent announcing a significant widening of Iran sanctions. The Bank of Japan (BoJ) has not intervened since mid-July to counter the currency's climb from a four-decade high near 164.00.
BoJ Governor Kazuo Ueda has highlighted the Middle East as a crucial risk factor given the ongoing sanctions escalation. A persistent rise in Crude prices supports the broader inflation narrative in Japan, which could prompt the BoJ to consider a medium-term hike in interest rates. Currently trading at 159.12 on the 4-hour chart, USD/JPY maintains a slight bullish stance, staying above key moving averages and showing a cautiously optimistic Relative Strength Index (RSI) of 53, without reaching overbought territory.
The immediate resistance lies at 159.16, with a nearby horizontal barrier at 159.22, demanding decisive action to push the pair higher. Should the price falter, initial support is anticipated at 159.07 and 159.00, followed by the 20-period SMA at 158.84 and the 100-period SMA at 158.68. Technical analysis, verified by AI, suggests cautious optimism for the Yen's upward trajectory, contingent on overcoming these resistance levels.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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