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Japanese yen weakens as Hormuz tensions lift USD/JPY near 162.4

USD/JPY traded near 162.4 as the US announced steps aimed at Iranian shipping, while investors also looked ahead to June US CPI.

Reported · Written up by our desk · Major Pairs

The Japanese yen weakened and the dollar strengthened versus the yen, with USD/JPY trading near 162.4 on Monday as tensions between the United States and Iran escalated. FXStreet said the US dollar stayed supported by higher oil prices and concerns that renewed energy pressure could keep global inflation elevated. The outlet noted that US President Donald Trump said the Strait of Hormuz would remain open with or without Iran and announced the reinstatement of a blockade targeting Iranian ships and customers, while also proposing a 20% charge on cargo using the waterway to cover security costs.

According to FXStreet, Iran rejected Washington’s involvement, saying the US would not be allowed to determine how the strait is managed, and warned that any unauthorized US attempt to transit the waterway would be confronted. Tehran also said cooperation between regional countries and Washington could be considered an act of war.

On the data front, FXStreet pointed to the upcoming June Consumer Price Index report, with headline inflation expected to ease to 3.8% year over year from 4.2%, and core CPI projected to be unchanged at 2.9% year over year. The brief also cited technical levels, saying USD/JPY around 162.46 held above key moving averages, with support seen near 162.41 and resistance around 162.47.

Latest closeUSD/JPY 162.44 ▲0.1%

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