USD/JPY slips as Fed cut hopes rise and tariff confusion grows
The post USD/JPY slips as Fed cut hopes rise and tariff confusion grows appeared on BitcoinEthereumNews.com.
USD/JPY trades around the 143.00 zone, reversing earlier gains in Thursday’s session. Fed rate cut hopes and record-high US tariffs on China weigh on sentiment. Resistance is seen near 143.05 and 145.10, with support at 142.45 and 142.26. The USD/JPY pair moved lower during Thursday’s European session, retreating toward the 143.00 zone after two days of modest recovery. The shift comes amid renewed US Dollar weakness as Fed rate cut speculation resurfaces and trade headlines stir market uncertainty. With risk sentiment modestly improved and US equities pushing higher—boosted by upbeat Durable Goods data and Trump’s trade optimism—the Japanese Yen continues to outperform most G10 peers, supported by a pullback in US yields and ongoing safe-haven demand. Markets entered Thursday’s session with a cautiously positive tone, sparked by US President Donald Trump’s comments on striking a deal with China and softening his stance on tariffs. Though US Treasury Secretary Scott Bessent later clarified that no formal offer had been made to China, he acknowledged that current tariff levels were likely unsustainable. On the data front, headline US Durable Goods Orders for March surged 10.4%, but the core reading excluding transportation fell flat at 0.0%, painting a mixed economic picture. Meanwhile, weekly Initial Jobless Claims ticked up slightly to 222K, suggesting minor softening in the US labor market. Fed Governor Beth Hammack emphasized patience in monetary policy, stating the Fed may act by June if data justifies it. These dovish tones, alongside persistent political and fiscal headwinds, have dragged the US Dollar Index (DXY) back below 99.50, limiting any rebound in USD/JPY. In Japan, attention is turning to next week’s visit by Economy Minister Ryosei Akazawa to Washington for renewed tariff negotiations. Prior discussions with the US were reportedly unfavorable for Japan, particularly regarding automobile and steel tariffs. Despite this, the Bank…
Filed under: News - @ April 24, 2025 10:27 pm