Yen Edges Closer to Key Level as Risk Appetite Fades
The Japanese Yen (JPY) is edging closer to its key level of 160.00 as risk appetite fades in global markets.
Investors are growing increasingly wary of a re-escalation of tensions in the Middle East, with the US and Iran still far from a durable peace agreement.
The Memorandum of Understanding signed by the two parties in June expired on Monday, and both sides have ramped up their threats.
US President Donald Trump threatened to bomb Oman if it 'gets in the way' of an agreement with Iran, while Iranian authorities announced they would shift to a 'fully offensive' military stance.
This sour market mood has drawn support for the US Dollar (USD), causing the USD/JPY pair to appreciate for the second consecutive day and reach the 159.75 area.
Soft Japanese data, including a miss on Gross Domestic Product (GDP) figures released on Monday, has also undermined support for the Yen.