Forex News: Yen Rises Amid Risk-off Mood

Yen Rises Amid Risk-off Mood

(RTTNews) - The Japanese yen strengthened against other major currencies in the European session on Wednesday, as European stock markets traded higher due to concerns over rising oil prices and bond yields.

Brent crude prices rose toward $95 a barrel after the U.S. military hit targets in Iran and Tehran retaliated by firing missiles and drones at various sites across the region, heightening fears of supply disruptions and threatening commercial shipping through the Strait of Hormuz.

Eurozone government bond yields rose further following similar moves in U.S. and Asian bonds overnight.

With Eurozone inflation reaching a near three-year high in August and unlikely to return to target over the medium term, a 25-basis point ECB rate hike on September 10 looks almost certain.

Meanwhile, Tehran launched missile and drone attacks towards U.S.-linked sites in Bahrain, Jordan and Kuwait in defiance of a warning from U.S. President Trump that any retaliation would see Iran "hit much harder" and that the U.S. is still holding out on "the biggest attack of them all."

The Iranian strikes came hours after the U.S. Central Command announced a fresh wave of attacks against IRGC targets, citing Tehran's attempts to lay mines in the Strait of Hormuz and an earlier attack on a U.S. military base.

During a G20 finance ministers' meeting, U.S. Treasury Secretary Scott Bessent explained that the Strait of Hormuz "will be bypassed within two years," predicting that the waterway would become "like a worthless lake" as oil flows are shifted to land routes.

Elsewhere, Russian forces launched a "massive" missile and drone attack on energy infrastructure in Ukraine's southern region of Odesa overnight in response to Ukrainian attacks on Russian targets.

In the European trading today, the yen rose to a 5-day high of 159.44 against the U.S. dollar, from an early more than a 1-month low of 160.40. On the upside, 157.00 is seen as the next resistance level for the yen.

Against the euro and the Swiss franc, the yen advanced to 2-weeks high of 184.55 and 196.05 from early lows of 185.70 and 197.33, respectively. If the yen extends its uptrend, it is likely to find resistance around 181.00 against the euro and against the franc.

The yen climbed to nearly a 2-week high of 215.25 against the pound, from an early low of 216.59. The next possible upside target for the yen is seen around the 193.00 region.

Against Australia, the New Zealand and the Canadian dollars, the yen advanced to an 8-day high of 113.84, more than a 3-week high of 92.76 and nearly a 2-week high of 114.57 from early lows of 114.67, 94.58 and 116.00, respectively. The yen may test resistance around 111.00 against the aussie, 91.00 against the kiwi and 113.00 against the loonie. Looking ahead, U.S. MBA mortgage approvals data, U.S. ADP employment data, U.S. factory, U.S. EIA crude oil data and U.S. Fed Beige book report are slated for release in the New York session.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2026 RTTNews.com. All Rights Reserved

Market News provided by RTTNews