The post USD/JPY drops on Iran peace optimism, tests 159.00 support appeared on BitcoinEthereumNews.com.

USD/JPY fell 0.62% on Tuesday, its second consecutive decline, closing around 158.70 after an early push toward 160.00 was firmly rejected. The sell-off dragged the pair below 159.00 for the first time in over a week, and Tuesday’s candle printed a long upper wick with a close near the session lows, pointing to sustained selling pressure near the recent cycle highs close to 160.50. The intraday reversal had a one-directional feel, with sellers in control from the early Asian session through the New York close. The decline was driven by a surge in risk appetite after reports that the White House is prepared to halt military operations against Iran, undermining the safe-haven bid that had supported the US Dollar through much of March. The S&P 500 posted its best single-session gain since the conflict began, and Treasury yields eased as the flight-to-safety trade unwound. The Federal Reserve held the federal funds rate at 3.50% to 3.75% in March, and Wednesday brings a heavy US data slate with the ADP Employment Change (40K consensus), February retail sales (0.5% MoM consensus), and the Institute for Supply Management (ISM) Manufacturing Purchasing Managers Index (PMI) (52.5 consensus) all due. Friday’s Non-Farm Payrolls (NFP) report (60K consensus) lands on Good Friday, when thin holiday liquidity could amplify any surprise. On the Japanese Yen side, the Bank of Japan’s (BoJ) March Summary of Opinions, released Monday, struck a hawkish tone, with one board member floating the possibility of a larger-than-usual rate hike if economic conditions hold, reinforcing expectations that the next move from 0.75% will be upward. Monday’s Tokyo Consumer Price Index (CPI) for March cooled to 1.4% YoY from 1.5%, with the core reading (excluding fresh food) easing to 1.7% versus 1.8% expected, taking some immediate urgency off the tightening timeline. However, a tighter-than-expected unemployment…

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Filed under: News - @ March 31, 2026 10:30 pm