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USD/JPY dips as Japan signals more pension fund domestic investment

Japan’s finance minister said the government may encourage GPIF and other pension funds to invest more in domestic assets, and the yen strengthened despite concerns about inflation.

Reported · Written up by our desk · Major Pairs

USD/JPY slid back from recent highs after Japan signaled it could push pension money toward domestic assets, with Finance Minister Katayama saying the government may encourage the GPIF and other pension funds to invest more in Japanese holdings. Her comments also pointed to gradual interest rate increases and additional government bond products for households, which supported both the yen and Japanese equities, according to Action Forex.

Trading during the week also reflected cross-asset swings. Crude oil prices rose early after President Trump said a ceasefire was over and fighting restarted in the Middle East, while later the U.S. agreed to continue talks with Iran, which weighed on oil and helped stabilize risk sentiment.

Markets largely tracked the Federal Reserve meeting minutes, which indicated some officials thought rates could be raised but the group still supported keeping rates unchanged. Action Forex said that aligned with expectations, limiting follow-through in USD moves.

The yen’s rebound came alongside inflation uncertainty, with higher-than-expected producer prices cited as a reminder that inflation remains a concern in Japan. Action Forex also described USD/JPY technical behavior around the 10-day moving average, framing the near-term environment as one where range trading could dominate unless Japanese authorities intervene.

Latest closeWTI crude $71.51 ▼0.8%|USD/JPY 161.67 ▼0.5%

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