The Japanese yen continues to struggle amid geopolitical tensions and oil supply disruptions linked to the US-Iran conflict. Despite the US dollar's recent correction, USD/JPY remains elevated, reflecting persistent yen weakness. Japan's heavy dependence on Middle Eastern oil has forced it to contemplate releasing more reserves, underscoring economic vulnerabilities. Notably, Tokyo’s recent rhetoric, including discussions between Finance Minister Katayama and US Treasury officials, indicates a rising likelihood of direct intervention to stabilize the yen. Traders should watch for official moves as USD/JPY approaches the critical 160 threshold, which could trigger decisive action to curb further depreciation.