The USD/JPY currency pair declined toward the 156.60 level on Friday, driven by increased demand for the Japanese Yen (JPY) as a safe-haven asset amid rising geopolitical tensions in the Middle East [1]. Market sentiment turned cautious following reports from Fox News that the US military conducted additional airstrikes targeting several empty tankers attempting to break a blockade. In response, an Iranian Foreign Ministry spokesperson stated that Tehran’s armed forces are 'fully prepared and closely monitoring the situation,' warning that Iran would respond 'with full force' to any aggression or provocation [1].
This escalation in geopolitical risk briefly boosted demand for traditional safe-haven assets, including the JPY. However, the broader market reaction remained relatively muted, with the US Dollar (USD) still holding near weekly lows [1]. Despite the safe-haven flows, resilient US labor-market data limited broader downside pressure on the USD. The latest US Nonfarm Payrolls (NFP) report showed the US economy added 115,000 jobs in April, surpassing market expectations of 62,000. The Unemployment Rate remained steady at 4.3%, while Average Hourly Earnings slowed to 0.2% month-over-month, indicating easing wage pressure despite continued labor-market resilience [1].
From a technical perspective, USD/JPY trades at 156.63, remaining below both the 20-period Simple Moving Average (SMA) at 156.77 and the 100-period SMA at 158.39 on the four-hour chart. The immediate pivot at 156.63 is being retested from below, with a Relative Strength Index (RSI) around 44, suggesting a lack of bullish momentum and reinforcing the idea of corrective consolidation rather than a decisive recovery. Key resistance levels are noted at 156.63, 156.71, and 156.82, while support sits at 156.44. A sustained break below this support could expose deeper weakness, whereas holding above it may keep the pair confined to a range beneath clustered resistances [1].
CONCLUSION
Geopolitical tensions in the Middle East have provided modest support to the safe-haven Yen, pushing USD/JPY lower, though the overall market reaction has been muted due to resilient US labor data. Technical indicators suggest the pair is in a corrective consolidation phase, with key support and resistance levels in focus for near-term direction.