#usdjpy

Asia’s markets rallied as the Bank of Japan’s historic rate hike to 1.00%—its highest level since 1995—combined with a US–Iran peace agreement that eased geopolitical tensions and sent oil prices to three-month lows. The Nikkei 225 surged above 70,000 for the first time, fueled by strong semiconductor demand, foreign inflows, and improving risk sentiment. Despite the BoJ’s tightening move, USD/JPY remained elevated near 160.31 as traders awaited the Federal Reserve’s policy decision and Chair Kevin Warsh’s first FOMC press conference. Commodities reflected the “peace dividend,” with oil, aluminium, and corn extending losses, while gold climbed toward $4,347. In crypto markets, Bitcoin held above $65,800 and Chainlink gained momentum, while Dogecoin continued to lag near yearly lows. Investors now look to the FOMC for guidance on rates, inflation, and the future direction of global risk assets.

The Asian session was driven by the Bank of Japan’s widely anticipated 25-basis-point rate hike to 1.00%, marking Japan’s highest policy rate since 1995 and reinforcing the country’s gradual exit from ultra-loose monetary policy. The yen strengthened modestly as USD/JPY traded near 160.26, while investors shifted focus to Wednesday’s FOMC decision under Fed Chair Kevin Warsh. Silver remained near historic highs around $69.39 despite mild profit-taking, supported by easing inflation expectations following the US-Iran peace agreement. Meanwhile, the Hang Seng slipped to 24,428 as technology and financial stocks faced selling pressure. In digital assets, Solana outperformed with strong gains, while Dogecoin and Bitcoin consolidated recent advances. Natural gas stayed under pressure near $3.13/MMBtu amid rising storage levels and weaker LNG exports. Markets now await the Fed’s policy outlook, which could set the tone for currencies, commodities, equities, and cryptocurrencies through the remainder of the week.

The Asia-Pacific markets enter a pivotal week as investors focus on central bank signals, geopolitical developments, and key commodity trends. USD/JPY remains near the critical 160 intervention zone after easing from recent highs, while NZD/USD rebounds on expectations of a more hawkish RBNZ outlook. Copper has recovered strongly above $6.20 amid growing supply deficit forecasts, reinforcing its long-term bullish narrative. Meanwhile, natural gas stabilizes following easing Middle East tensions, and the Hang Seng retraces after a sharp rally driven by improving risk sentiment. In digital assets, Solana gains momentum ahead of its Alpenglow upgrade, while Litecoin continues to recover within a key demand zone. Markets will closely watch the FOMC minutes, Japan’s inflation signals, and upcoming economic data for fresh directional cues across currencies, commodities, equities, and cryptocurrencies.

EUR/USD is rebounding from a key support zone after a pullback, keeping the broader bullish trend intact. Softer US data and reduced safe-haven demand for USD continue to support upside momentum.

Key Levels:

R1: 1.1810 | R2: 1.1885

S1: 1.1590 | S2: 1.1505

Short-term bias remains bullish unless support breaks.

👆👆

USD/JPY steady near 159.50 📈

Weak BoJ hike bets weigh on JPY, while softer Fed outlook caps USD.

Intervention fears keep gains in check.

TP1 hit, that's +200 pips ✅

Let's CLOSE some profit now 🫡🔥