USD Softens on Iran Talks, but USD/JPY Stays Supported Above 157.55

If US–Iran negotiations continue and the Strait of Hormuz remains open, geopolitical risk is likely to stay lower. This reduces safe-haven demand for the US dollar and can keep the dollar slightly weaker in the short term, especially as falling oil prices remove some inflation pressure. However, the downside in the dollar may remain limited unless the geopolitical situation improves more clearly and permanently.

Despite broader USD softness, USD/JPY has stayed relatively strong and continues to hold key support between 157.55 and 158.30, recently bouncing back toward the 160.00 level. If the dollar strengthens again, the pair could retest 160.00, with further resistance near 161.95 and 165.00 becoming important levels to watch, particularly ahead of any possible intervention concerns from the Bank of Japan.

USD/JPY Daily Chart