With tensions in the Middle East easing, the USD/JPY pair continues to fall slightly.

【7/27Market Overview

During Tokyo time, as the United States temporarily halted its attack on Iran, geopolitical risks surrounding the Middle East retreated. Crude oil prices fell sharply, and yen buying and dollar selling led the way. With U.S. Treasury yields for the upcoming session dropping, the USD/JPY fell to163.45yen. In European trading, USD/JPY briefly dropped to163.32yen. After a selling wave subsided, buying returned to the forefront. When an Iranian Foreign Ministry spokesperson stated that “currently there are no talks or negotiations with the United States,” dollar buying accelerated.New Yorktime, on the back of expectations for U.S. rate hikes and concerns about Japan’s fiscal deterioration, the USD/JPY rose to163.79yen.

【7/28Market Outlook