USD/JPY: Energy shock and flows point higher – MUFG

MUFG analysts see recent Yen weakness as fundamentally justified and expect further downside for the Japanese Yen if the Middle East crisis persists. MUFG analysts see recent Yen weakness as fundamentally justified and expect further downside for the Japanese Yen if the Middle East crisis persists. MUFG analysts see recent Yen weakness as fundamentally justified and expect further… MUFG analysts see recent Yen weakness as fundamentally justified and expect further downside for the Japanese Yen if the Middle East crisis persists. MUFG analysts see recent Yen weakness as fundamentally justified and expect further downside for the Japanese Yen if the Middle East crisis persists. They argue terms-of-trade deterioration, rising global yields, and increased unhedged foreign equity buying by Japanese households are undermining the currency. MUFG warns USD/JPY could break key resistance and retest the 2024 high near 161.95.Yen fundamentals deteriorate as crisis deepens"Since Friday 13th March we have had five separate… For traders, the practical value is less about the headline alone and more about how it changes context, sentiment and the quality of the next decision. Watch follow-through, not just the first reaction: liquidity, volatility and confirmation across related assets usually tell the real story.