Fundamental Market Analysis for June 1, 2026 USDJPYUS Dollar/Japanese YenSAXO:USDJPYFresh-Forexcast2004USD/JPY is holding near 159.450–159.500, as the US dollar keeps its advantage amid the yield gap and demand for the US currency. The yen remains vulnerable despite expectations of a possible rate hike by the Bank of Japan in June. Investors are waiting for new signals from Governor Kazuo Ueda, but the market does not yet see a sufficiently firm position that could quickly shift the balance in favor of the Japanese currency. The fundamental background supports the US dollar. Geopolitical tensions and rising oil-related risks increase inflation concerns in the US, which may encourage the Federal Reserve to maintain a stricter position. For Japan, expensive energy is also a problem, but the Bank of Japan is acting cautiously to avoid damaging the economic recovery. Therefore, even expectations of a rate hike do not guarantee a stable strengthening of the yen. The base scenario for today is growth in USD/JPY. The main risk for buying is the pair’s proximity to the area where Japanese authorities may intensify verbal warnings about the currency market. Nevertheless, there are currently no direct signs of intervention, while the difference in monetary policy expectations remains in favor of the US dollar. Therefore, with the current news background preserved, buying remains preferable. Trading recommendation: BUY 159.450, SL 159.150, TP 160.350