USD/JPY stays flat as decreased Middle East tensions lessen demand for the dollar
The USD/JPY pair traded within a narrow band on Tuesday as Middle East tensions eased, weakening safe‑haven demand for the US dollar. The Japanese yen, also a safe‑haven asset, saw reduced buying pressure. With no clear catalyst, the pair hovered around the 149‑150 range. The muted action stems from three factors. First, de‑escalation in the Israel‑Hamas conflict rotated funds out of safe‑haven currencies. Second, mixed US data leaves the Federal Reserve’s rate‑cut timeline uncertain. Third, the Bank of Japan’s ultra‑loose policy caps yen upside despite shifting global yields. Traders expect the pair to stay range‑bound until a new catalyst appears, such as a decisive Fed signal or renewed geopolitical risk. The 150.00 level serves as key psychological resistance, while support sits near 149.00. A breakout above or below these levels would signal the next directional move.























