MUFG: Energy Shock and Japan Policy Risks Weigh on Yen, USD/JPY Near YTD Highs
MUFG analyst Lee Hardman warns that a negative energy price shock, driven by rising Brent crude amid US-Iran tensions and Houthi shipping threats, is pressuring the Japanese yen. USD/JPY remains just below its year-to-date highs as Japan's policy risks add to the headwinds.
MUFG currency strategist Lee Hardman notes that USD/JPY is holding just below year-to-date highs, weighed by a negative energy price shock. Rising Brent crude prices tied to escalating US–Iran tensions and Houthi threats to Red Sea shipping highlight growing supply-side risks.
Japan's vulnerability as a major energy importer exacerbates yen weakness, with additional drag from domestic policy uncertainty. The combination of external energy pressures and internal policy risks keeps the yen under sustained selling pressure.
Source: FXStreet Forex News