The Japanese yen weakened slightly after producer inflation data came in below expectations, raising doubts about the Bank of Japan’s ability to increase interest rates. The USDJPY pair moved back above 158 yen, although revised GDP data provided limited support to the Japanese currency. Other Asian currencies, including the Singapore dollar, South Korean won, Chinese yuan, and Indian rupee, showed mixed but generally stable movements.

Tensions in the energy market also remain an important factor for global markets. Iran’s actions in the Strait of Hormuz, a critical route for oil and gas shipments to Asia, have raised concerns about possible supply disruptions. Countries such as Japan, South Korea, Singapore, and India are considered particularly vulnerable because they depend heavily on energy imports. Meanwhile, China is viewed as somewhat better protected against immediate supply shocks.

From a technical perspective, the EURUSD pair continues to show resilience, with repeated price rejections preventing a deeper decline. Key resistance levels are located around 1.1686 and 1.1748, and a move toward these levels could occur in the short term, especially around the CPI announcement. If sellers return at these levels and a higher low forms afterward, it could signal a potential broader market reversal.

For traders, the upcoming U.S. inflation data could become the main catalyst for currency movements in the short term. A stronger-than-expected report may support the U.S. dollar, while weaker data could lead to further gains in pairs such as EURUSD or GBPUSD. Investors should consider closely monitoring key technical levels and geopolitical developments, using cautious strategies until clearer signals emerge from both economic data and global events.