Japanese Yen futures rallied as the Strait of Hormuz reopened.

June Japanese Yen futures broke above their 50-day moving average, reaching their highest level since March 20. Despite pulling back from intraday highs, the contract finished up 0.4% on the session, marking its third consecutive weekly gain. The yen found support from the reopening of the Strait of Hormuz during the announced ceasefire, a critical development for Japan, which sources over 95% of its crude oil imports from the Middle East. The prior closure had forced Tokyo into its largest strategic petroleum reserve drawdown since 1978. Meanwhile, the Bank of Japan faces a complicated policy environment. Higher oil prices risk inflation, while simultaneously suppressing economic growth, leaving the central bank expected to maintain a wait-and-see approach and hold rates steady this month.