Jpy

• US stocks are expected to open firmer following President Trump's announcement over the weekend that he cancelled planned strikes on Iran. • The decision to halt military action came at the request of Tehran and other Middle East nations, contingent upon the rapid negotiation of a deal. • Brent crude oil prices dropped by 4.7% as geopolitical tensions eased, while the Japanese Yen extended gains amid threats of market intervention.

• The Japanese yen rose nearly 1% against the U.S. dollar on Monday as investors anticipated a potential coordinated currency intervention between Japan and the United States. • This rally is driven by market expectations that Japanese authorities will act to stabilize the currency, alongside shifting outlooks regarding the Bank of Japan's monetary policy. • The movement is significant as it reflects growing volatility in the USD/JPY pair and highlights the tension between U.S. economic strength and Japanese currency stability.

• European markets saw major indices reach new highs during the morning session on July 31, 2026. • The USD/JPY pair extended its rebound above 160 following a Bank of Japan decision and speculation regarding market intervention. • Eurozone inflation experienced a slight uptick in July, adding volatility to currency and bond markets.

• The USD/JPY exchange rate rose 0.53% to ¥160.39 following the Federal Reserve's decision to keep US interest rates steady. • Japanese authorities intervened in the foreign exchange market by selling US dollars and buying yen to combat the currency's sharp depreciation. • This volatility highlights the ongoing tension between US monetary policy and Japan's efforts to stabilize its currency.

• The EUR/JPY currency pair experienced a decline to 183.14 last week before seeing a partial recovery. • Analysts view the drop from 186.30 as the third leg of a larger pattern originating from the 187.93 level. • The current market bias remains neutral, with a critical support level identified at 182.01.