USD/JPY Under Pressure: BoJ Deploys ¥4.68T as Hormuz Crisis Stalls Trade

Global trade has been severely disrupted as approximately 1,600 vessels remain stranded in the Strait of Hormuz, creating a historic shipping bottleneck with profound implications for forex markets. The Bank of Japan responded aggressively, intervening with ¥4.68 trillion to stabilize the yen amid heightened volatility and safe-haven demand. The intervention suggests USD/JPY had moved to levels deemed unacceptable by Japanese authorities, likely reflecting sharp yen appreciation driven by risk aversion. The shipping crisis has amplified concerns about global supply chain disruptions, with energy-importing nations particularly vulnerable. Japan, heavily dependent on Middle Eastern oil transiting through Hormuz, faces direct economic exposure. The BoJ's massive intervention signals its willingness to defend a floor in USD/JPY, but sustained geopolitical tensions could overwhelm these efforts. Traders should watch for further BoJ action if yen strength persists. Key technical levels include the intervention zone as immediate support for USD/JPY, while resistance will depend on the pace of crisis resolution. Risk sentiment remains fragile.