USD\/JPY drew dip buyers early in the week, rising to around 157.75 in Asia and retracing part of Friday\u2019s pullback from a multi-week peak. Gains held after the Bank of Japan minutes, though the pair remained driven by US dollar direction. A hawkish Federal Reserve stance and energy-led inflation concerns kept US yields close to multi-year highs; in a separate catalyst, safe-haven demand linked to the US-Iran standoff supported the dollar near its strongest level since 29 July, last reached on Thursday. The yen showed little response to the July BoJ minutes, which said financial conditions remain accommodative and firms are passing through higher raw material costs, sustaining inflation.<\/p>\n\n
Positioning stayed cautious ahead of further Middle East developments, while markets looked to remarks from Federal Open Market Committee speakers later in North America. <\/p>\n\n
Technically, the pair moved back above the 23.6% Fibonacci retracement and held below the 50-period simple moving average on the four-hour chart, reinforcing a constructive bias above that level. Resistance sits near the cycle high at 159.08. Supports are seen at 157.62, then 157.17, followed by 156.71 and 155.98.<\/p>\n\n\n\n