Analysis

The GBP/USD pair struggles to capitalize on the previous day's late bounce from the 1.3500 psychological mark, or a nearly two-week low, and oscillates in a narrow band during the Asian session on Wednesday.

USD/JPY extends its gains for the third successive day, trading around 157.70 during the Asian hours on Wednesday.

TradingKey - On Tuesday (May 12), the Bank of Japan released the minutes of its April monetary policy meeting. The minutes revealed that several policy board members believed the central bank may need to raise interest rates soon, with some even suggesting that action could be taken as early as the June meeting.

The U.S. dollar held its ground on Tuesday as talks to end the war in the Middle East showed no signs of progress, pushing oil prices higher and worrying investors that interest rates may need to stay higher to tackle inflationary pressures.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is holding gains after modest losses the previous day, trading around 98.10 during Asian hours on Monday.

Brokers, fintech firms, liquidity providers, banks, EMIs, wealth and portfolio managers, and hedge funds have a new meeting point in APAC.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is inching lower after registering modest gains in the previous day and trading around 98.20 during the Asian hours on Friday.

TradingKey - During the Asia mid-day session on Wednesday, May 6, the Japanese yen experienced another sharp intraday surge. USD/JPY briefly touched 155.04, marking the yen's strongest level since February 24, with intraday gains reaching as much as 1.8%.

TradingKey - During Wednesday's Asian session, the yen strengthened sharply, with USD/JPY briefly dropping to the 155 mark. The market has characterized this move as another intervention by Japanese authorities. Despite Japan's ample foreign reserves, the frequency of interventions this year is limited by IMF guidelines. Currently, the Bank of Japan is engaged in an intensive strategic game with the market regarding its policy space.

The USD/JPY pair loses ground to around 157.65 during the Asian trading hours on Wednesday. The US Dollar (USD) weakens against the Japanese Yen (JPY) after US President Donald Trump announces a pause on 'Project Freedom' in the Strait of Hormuz.

TradingKey - Japanese authorities have once again issued a warning to the foreign exchange market. Following the strongest intervention warning to date from Finance Minister Satsuki Katayama, which hinted at imminent market entry to support the currency, the yen surged during intraday trading on April 30 at 10:26 am GMT. USD/JPY fell by more than 3% at one point, marking its largest decline since August last year.

The dollar touched a new multi-week high on Thursday as fears of a further escalation in the Middle East lifted oil prices, while the Federal Reserve offered no hint of an easing shift.

The US Dollar (USD) appreciates against the Japanese Yen (JPY) for the third consecutive day on Thursday, to hit 21-month highs at 160.73, levels that urged Japanese authorities to act in the past, since the 160.00 round mark is considered a line in the sand for Tokyo.

TradingKey — USD/JPY has recently continued to hover below the 160 threshold, reflecting a market digesting the reality that Japanese inflation has yet to fully cool, while awaiting potential further intervention from the Bank of Japan and the Ministry of Finance.

EUR/USD remains subdued for the second consecutive day, trading around 1.1740 during the Asian hours on Wednesday. The pair holds little losses as the US Dollar (USD) gains ground on increased market caution amid ongoing uncertainty surrounding the Middle East conflict.

The EUR/USD pair attracts fresh buyers near the 1.1730-1.1725 region, or a one-week-old touched during the Asian session, and fills a major part of its bearish gap on Monday.

TradingKey - As the U.S. Dollar Index continues to pull back from its highs amid easing geopolitical tensions and weakened rate cut expectations, the Japanese yen, instead of strengthening, has persistently hovered around the key psychological level of 160, repeatedly nearing the Japanese authoritie

EUR/JPY gains after registering little losses in the previous day, trading at 187.83, an all-time high, during the Asian hours on Friday. The technical analysis of the daily chart indicates the currency cross is trending higher within an ascending channel, signaling a persistent bullish bias.

EUR/USD remains calm after halting its seven-day winning streak, trading around 1.1790 during the Asian hours on Wednesday. The daily chart technical analysis indicates a bullish bias, as the pair is moving upwards within an ascending channel.

The EUR/USD pair recovers a majority of its opening losses, but is still 0.2% down to near 1.1700 during the late European trading session on Monday. The major currency pair is still under pressure as renewed geopolitical tensions have prompted a risk-off mood.