Japanese Yen softens on Middle East uncertainty; official warns of FX intervention
The post Japanese Yen softens on Middle East uncertainty; official warns of FX intervention appeared on BitcoinEthereumNews.com.
The USD/JPY pair gathers strength around 159.35 during the Asian trading hours on Friday. The pair extends the rally for the third consecutive day amid uncertainty in the Middle East. However, heightening intervention warnings from Japanese officials might cap the upside for USD/JPY. US President Donald Trump said on Thursday that Israel and Lebanon agreed to a 10-day ceasefire. The uncertainty in the Middle East remains high as the Lebanese army stated on Friday that it recorded multiple ceasefire violations by Israel after the truce went into effect at midnight local time on Friday. Rising tensions in the Middle East could boost the US Dollar (USD) against the Japanese Yen (JPY). Traders will closely monitor a second round of negotiations between the US and Iran that could take place this weekend. Earlier on Thursday, Trump expressed optimism about the possibility that the US and Iran could clinch a permanent ceasefire ahead of its expiration next week. Intervention fears from Japanese authorities could underpin the JPY and create a tailwind for the pair. Japan’s Finance Minister Satsuki Katayama said on Thursday that she’s held close discussions on foreign exchange issues with US Treasury Secretary Scott Bessent and that authorities are prepared for “bold” action if needed. Japanese Yen FAQs The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors. One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns…
Filed under: News - @ April 17, 2026 2:19 am