USD/JPY Weekly Outlook: Yen battered by energy crisis, raising chances of intervention

Global Markets React to US-Israel and Iran Tensions

Financial markets in the past week have been heavily influenced by escalating tensions involving the United States, Israel, and Iran, particularly following the near shutdown of the Strait of Hormuz. This disruption has sharply divided currency markets: nations with abundant energy resources and strong production capabilities have seen their currencies strengthen, while those dependent on energy imports have faced mounting pressure. This dynamic is a key reason behind the continued rise of the USD/JPY pair. As a dominant force in global energy, the United States remains largely insulated from these shocks, while energy-importing economies, such as Japan, are more vulnerable.