USD/JPY Drops After Trump Signals De-Escalation With Iran

USD has weakened after de-escalation signals in the Middle East, including comments from Donald Trump about suspending possible military action against Iran. This reduced safe-haven demand for the US dollar across major pairs and helped push USD/JPY lower. Importantly, the move happened without intervention from the Bank of Japan, showing the decline was mainly driven by improving market sentiment rather than policy action.

Technically,USD/JPY has dropped sharply to around 158.28 and has now broken below its ascending triangle pattern, weakening the short-term bullish structure.

If the upcoming US Core PCE inflation data comes in weaker than expected, the dollar could face additional pressure.In that case, after a small upside retracement, USD/JPY may continue lower toward the 157.05 support level.