USD/JPY experienced heightened volatility during Asian trading, swinging between 156.80 and 157.40 as multiple factors drove market uncertainty. Oil price concerns intensified following Middle East tensions, with WTI crude surging 1.8% to $75.20/barrel, supporting traditional safe-haven demand for the yen. Japanese wage data showed unexpected strength, with base salaries rising 2.8% year-over-year, bolstering Bank of Japan rate hike expectations for 2025. The pair currently trades at 157.15, down 0.3% from Friday's close. Technical indicators suggest increasing bearish pressure, with the 157.50 resistance holding firm while support at 156.50 faces repeated tests. The combination of geopolitical risks, energy market volatility, and shifting monetary policy expectations creates a challenging environment for USD/JPY bulls. Near-term direction likely depends on whether risk sentiment stabilizes.
News data provided by Marketaux.
ForexSentiment.live provides this summary as a convenience with proper attribution to the original source.
The full article is available at the original publisher's website.