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USD/JPY stays near year-to-date highs as energy shock weighs on yen

MUFG said USD/JPY is trading just below the 163.00 level, with Brent strength tied to US-Iran and shipping risks adding pressure on the yen.

Reported · Written up by our desk · Major Pairs

MUFG’s Lee Hardman said USD/JPY is holding just below year-to-date highs as a negative energy price shock continues to weigh on Japanese yen performance.

The note pointed to rising Brent prices linked to US-Iran tensions and Houthi threats to shipping as a sign of growing global supply risks.

Hardman also cited Japan’s newly approved annual economic and fiscal plan, saying it shapes expectations for future Bank of Japan policy and yen performance.

He added that the plan includes language indicating the government will leave specific monetary policy tools to the BoJ while seeking stable price increases, which helped ease investor concerns about potential limits on further policy tightening.

Latest closeBrent $84.94 ▼0.0%|USD/JPY 162.33 ▲0.2%

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