USD/JPY tests 160.00 as ceasefire uncertainty keeps the Yen under pressure

💡 DMK Insight

With oil prices breaching $100, traders need to pay close attention to geopolitical tensions. Trump’s deadline for Iran to reopen the Strait of Hormuz is a critical moment that could escalate or de-escalate market volatility. If Iran fails to comply, expect oil prices to spike further, potentially testing resistance levels above $105. This situation is compounded by stalled ceasefire talks, which could lead to supply disruptions. Traders should monitor not just oil but also related assets like energy stocks and ETFs, as they often react sharply to crude price movements. On the flip side, if a resolution is reached, we might see a rapid pullback in oil prices, providing a potential shorting opportunity. Keep an eye on the daily chart for oil; a close below $98 could signal a bearish reversal. The next few days are crucial, so stay alert for any news that could shift market sentiment dramatically.