USD/JPY faces yen intervention fears as Hormuz tensions lift oil prices

USD/JPY is under pressure as Japanese officials signal heightened scrutiny of yen weakness, with former BOJ board member Kiuchi declining to specify an intervention level but confirming authorities are closely monitoring FX impacts. The PBOC set the USD/CNY central rate at 6.7917, maintaining a steady hand amid broader Asia-Pacific market turbulence. Japan's Nikkei slipped on yen intervention fears while South Korea's Kospi wobbled. Geopolitical tensions surrounding the Strait of Hormuz incident and Iranian threats drove a 7% plunge in Brent and WTI crude before a modest recovery, injecting risk-off sentiment across the region. Australian household spending rose 0.8% in June, beating expectations and providing mild support for AUD. UBS noted that earnings strength and gradual Hormuz recovery support equities, though near-term volatility remains elevated. Crypto markets also felt pressure as Telegram's App Store delisting sent GRAM sliding. Traders should watch for further yen intervention signals and oil price stabilization as key directional catalysts across Asia-Pacific FX pairs.