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Yen Rallies to 158.10 Area as Safe-Haven Dollar Demand Recedes

Wed Apr 8, 2026 3:31 pm JST Currency

### Yen Rallies as Trump Signal on Iran Triggers Safe-Haven Unwinding

The USD/JPY pair tumbled in Tokyo trading on Wednesday, standing at \158.28 as of 3:00 p.m., a sharp decline of over \1.50 from Tuesday’s late-afternoon levels. The greenback, which had been flirting with the \160 threshold during New York hours, faced intense selling pressure following a social media post from President Trump. The President announced a two-week moratorium on major strikes against Iran, a move that immediately deflated the "flight-to-dollar" premium.

The de-escalation signal sent crude oil futures into a tailspin, further accelerating the unwinding of dollar-long positions. While the yen strengthened significantly against the dollar, it softened slightly against the euro; the EUR/JPY traded at \185.06, up over 50 sen (\0.50) from the previous day. Market participants remain cautious, however, as the two-week window for diplomacy keeps volatility high ahead of the European and U.S. sessions.

Source: MINKABU PRESS

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