USD nears a one-week high ahead of the Trump–Xi Summit, while the yen remains under heavy pressure in Asia

📌 The US dollar stayed firm during the Asian session, with DXY hovering around 98.2–98.3 and approaching its highest level in a week. The move reflects a more defensive market tone as macro and geopolitical risks converge at the same time.
💵 USD/JPY climbed toward the 157 area, putting the yen among the most pressured major currencies. This is a sensitive zone, as markets may start paying closer attention to the risk of Japanese intervention if yen weakness continues.
🌏 The key short-term focus is the Trump–Xi Summit scheduled for May 14–15 in Beijing. Investors are reducing risk exposure ahead of possible new signals on trade, tariffs, technology restrictions, and geopolitical flashpoints.
📊 Beyond politics, the dollar is also supported by expectations that the Fed may stay cautious for longer. As hopes for an early rate cut weaken, US yields are likely to remain elevated, giving the greenback additional support.
⚠️ FX volatility in Asia could stay high over the next 24–48 hours. If the summit signals de-escalation, the dollar may pull back quickly and the yen could stage a technical rebound; if trade or geopolitical tensions rise further, USD/JPY may continue moving toward the 158–160 area.
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