USD/JPY Weekly Forecast: Energy shock hammers yen as intervention risk looms

Markets over the past week have been almost entirely beholden to the conflict between the United States and Israel against Iran, with the effective closure of the Strait of Hormuz at the centre. The disruption has created a clear divide between the energy haves and have-nots in currency markets, with those with vast reserves and production capacity benefiting from a positive terms-of-trade shock, while currencies linked to economies heavily reliant on imported energy have come under pressure.