This Week's Market - May 19, 2026 (Tuesday)

USD/JPY remains range-bound with limited momentum as there has been no progress toward a ceasefire between Iran and the US, and safe-haven dollar buying demand continues to be strong.

If the US administration decides to launch another attack on Iran, a stronger dollar driven by rising oil prices would be expected, further heightening the risk of intervention. As such, developments in the Iran situation continue to warrant close attention.

There are few notable US economic indicators scheduled for today, so the focus shifts to the FOMC meeting minutes to be released in the early hours of May 21. If the minutes reveal the extent to which hawkish discussions intensified at the previous meeting, there is a possibility of further dollar strength.

From a technical perspective, the downside target for USD/JPY is yesterday's low of 158.54 yen, while the upside target appears to be yesterday's high of 159.08 yen.