Japanese Yen flat vs USD as BoJ hawkish pause meets Fed caution
Finance Japanese Yen flat vs USD as BoJ hawkish pause meets Fed caution The USD/JPY pair struggles to capitalize on the previous days goodish rebound from sub-159.00 levels, or a one-week low, and oscillates in a narrow band during the Asian session on Wednesday. Spot prices currently trade around the 159.50 area, nearly unchanged for the day, and remain confined within a familiar range held over the past month or so. Despite the Bank of Japans (BoJ) hawkish pause on Tuesday, the Japanese Yen (JPY) continues with its struggle to attract any meaningful buyers amid economic concerns stemming from the Iran war and the effective closure of the Strait of Hormuz. The US Dollar (USD), on the other hand, benefits from its reserve currency status on the back of persistent geopolitical uncertainties and turns out to be another factor acting as a tailwind for the USD/JPY pair. Hopes for a revival of US-Iran peace talks receded after US President Donald Trump canceled his special envoy‘s planned visit to Pakistan. Moreover, shipping traffic through the Strait of Hormuz remains blocked due to Iran’s restrictions on movements and the US naval blockade of Iranian ports. Given that Japan depends on energy imports from the Middle East,