Japanese Yen Hits 10-week High

The Japanese Yen touched 155.49 against the USD, the highest since February 2026. Over the past 4 weeks, US Dollar Japanese Yen lost 2.51%, and in the last 12 months, it increased 8.2%.

The Japanese yen rose toward 157.5 per dollar on Wednesday, snapping a three-day losing streak as both the US dollar and oil prices declined on growing signs of de-escalation in the Middle East. Washington reaffirmed the ceasefire, confirmed that offensive operations against Iran have ended, and temporarily paused efforts to assist stranded vessels leaving the Strait of Hormuz to allow time for potential renewed talks with Tehran. The yen remains particularly sensitive to Middle East developments due to Japan’s heavy dependence on oil imports from the Gulf. At the same time, investors stayed alert to the possibility of official support for the currency following suspected intervention by Japanese authorities last week. Estimates suggest Tokyo may have deployed around $35 billion to stabilize the yen, although officials have not confirmed any intervention. Still, the yen’s recent pullback suggests a lack of further follow-through action from policymakers.

The Japanese yen weakened past 157 per dollar on Tuesday, paring recent gains as the dollar rebounded on safe-haven demand amid renewed hostilities in the Middle East that threatened to unravel the four-week ceasefire between the US and Iran. Escalating tensions around the Strait of Hormuz, which pushed energy prices higher, also bolstered expectations that the US Federal Reserve may need to raise interest rates to contain inflation, lending additional support to the dollar. Meanwhile, traders remained cautious following suspected intervention by Japanese authorities last week, which triggered a sharp rally in the yen. Reports suggested Tokyo may have spent roughly $35 billion to support its currency, though officials have not confirmed any action. Market participants continue to weigh the risk of further intervention, with Tokyo often taking advantage of thin holiday liquidity and typically conducting multiple rounds of yen buying when stepping in.