USD/JPY Eases as Hormuz Strait Hopes Weigh on Crude; Koeda, Warsh in Focus

USD/JPY is under pressure as easing geopolitical tensions around the Strait of Hormuz have driven crude oil prices lower, reducing risk premium and shifting safe-haven dynamics in favor of the Japanese yen. The decline in Brent Oil futures has lessened energy import cost concerns for Japan, offering some support to the yen. Traders are now focused on upcoming remarks from Bank of Japan Deputy Governor Koeda and potential Fed nominee Kevin Warsh, both of whom could provide critical signals on the monetary policy outlook for their respective economies. The US-Japan 2-year yield spread remains a key driver, with any hawkish BOJ commentary likely to narrow the differential further and add downside pressure to the pair. Near-term support is seen around the recent consolidation zone, while resistance aligns with prior swing highs. Traders should monitor oil price developments and central bank rhetoric closely, as both could catalyze sharp moves in USD/JPY in the sessions ahead.