• USD/JPY edged higher as renewed optimism surrounding the Israel-Iran ceasefire lifted risk appetite reduced demand for safe-haven assets.
• The fragile ceasefire has largely held for now, though tensions remain elevated, with Israel warning of a strong response to recent Iranian missile attacks that followed U.S. President Donald Trump's declaration of an end to hostilities.
• With a relatively quiet domestic economic calendar, investor attention is expected to remain centered on developments surrounding the Israel-Iran ceasefire.
• Data released on Wednesday showed Japan’s service-sector inflation indicator climbed to 3.3% in May, a rise that has strengthened expectations of further interest rate hikes by the Bank of Japan as price pressures persist in the economy.
• At GMT 07:44 dollar was trading at up 0.22% at 145.25 against the U.S. dollar.
• Key resistance levels: 146.20 (June 26th high), 146.78 (Upper Bollinger Band), and 148.11 (50%fib).
• Support levels: 144.62 (38.2%fib), 142.79 (June 13th low), and 142.38 (Lower BB).
Recommendation: Be on side lines
