Dollar/yen falls for the first time in eight days as expectations of easing Middle East tensions rise.

【5/20Market Overview

In Tokyo time, USD/JPY moved with intervention alert from former U.S. Treasury Secretary Ben S. and Japanese Finance Minister Katayama, and as U.S. 10-year Treasury yields fell, it dropped to 158.81 yen. In European time, USD/JPY hovered around 159 yen with no clear direction.10158.81yen159below 159yenaround159.16yen; however, Middle East media reported that “Pakistan’s military leader may visit Iran tomorrow and announce a final version of the agreement,” and President Trump said that “we are at the final stage of talks with Iran,” prompting a drop to158.58yen. Meanwhile, a spokesperson for Iran’s Foreign Ministry indicated that Iran is “considering the U.S. side’s view,” which subdued selling, and the pair was bought back to around158.90yen.

【5/21Market View