Home›Forex›Major Pairs›USD/JPY climbs toward 164 as yen hits multi-decade lows

USD/JPY climbs toward 164 as yen hits multi-decade lows

The yen weakens near 164, while higher WTI crude prices and Middle East tension bolster the dollar ahead of the Fed and Bank of Japan meetings.

Reported · Written up by our desk · Major Pairs

The Japanese yen is weakening toward 164 per U.S. dollar, trading at roughly its weakest level in around 40 years as the rate gap between the United States and Japan continues to pressure the currency, Action Forex reports. Concerns about Japan’s finances and government borrowing also weigh on sentiment, with investors largely unfazed by warnings about possible yen intervention.

The dollar’s strength is also supported by Middle East tensions, which have pushed oil higher. WTI crude moved up as fighting continued and ceasefire hopes faded, and the resulting rise in inflation concerns has increased the likelihood that the Federal Reserve could consider further rate hikes.

Action Forex also links the broader market mood to the same drivers, noting that global equities fell as investors became more cautious amid expectations for large AI-related spending. In the backdrop, the European Central Bank kept rates unchanged but said additional increases remain possible.

For traders, Action Forex highlights upcoming Federal Reserve and Bank of Japan meetings and points to key near-term levels for USD/JPY, including resistance around 164.00 and 165.00 and support around 162.00 and 161.00. It also describes how higher oil prices may keep pressure on inflation expectations, reinforcing the outlook for a persistent U.S.-Japan interest rate gap.

Latest closeWTI crude $90.47 ▼1.9%|USD/JPY 163.79 ▲0.4%

More like this

Sources