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Yen weakens toward 160 as risk-off sentiment grows

USD/JPY held around 159.75 for a second straight day, nearing the 160.00 level while investors weighed renewed Middle East tension after a US-Iran memorandum expired.

Reported · Written up by our desk · Major Pairs

The Japanese yen slid further as a risk-off mood supported the US dollar, pushing USD/JPY higher for the second consecutive day and bringing the pair into the 159.75 area ahead of the 160.00 level viewed as important by Tokyo authorities, according to FXStreet.

FXStreet linked the move to investor caution after the Memorandum of Understanding signed by the US and Iran in June expired on Monday, with both sides still far from a durable peace agreement and each ramping up threats.

In the Middle East, the outlet said US President Donald Trump threatened to bomb Oman if it “gets in the way” of an agreement with Iran, while Iranian authorities said they would shift to a “fully offensive” military stance, further straining a fragile ceasefire.

Japan data also added pressure on the yen, as GDP missed expectations, slowing to 0.3% in the second quarter from 0.5% in the prior quarter, FXStreet noted, raising doubts about the pace of the Bank of Japan’s monetary tightening cycle.

Latest closeUSD/JPY 159.31 ▼0.1%

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