Japanese Yen Holds Steady as Oil Prices Climb, USD/JPY Near 163.70

The Japanese yen held its ground on Wednesday despite a rebound in oil prices, a frequent headwind for the currency given Japan’s heavy energy imports. USD/JPY slipped to around 163.70 during Asian trading, erasing minor gains from the prior session.

Elevated crude prices tend to widen Japan’s trade deficit and weigh on the yen, but the currency may have drawn support from intervention speculation or a cautious market mood. Meanwhile, the US dollar remained firm on hawkish Federal Reserve expectations.

Should oil continue to climb, yen selling pressure could resume, potentially pushing the pair higher. For now, USD/JPY remains rangebound near the 163.70 level.