Japanese Yen strengthens above 156.00 on US tariff uncertainty
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The USD/JPY pair drifts lower to near 156.15 during the early Asian session on Thursday. The US Dollar (USD) softens against the Japanese Yen (JPY) amid US tariff uncertainty. Traders brace for the release of Japan’s Tokyo Consumer Price Index (CPI) and US Producer Price Index (PPI) reports, which will be released later on Friday. The US Supreme Court struck down US President Donald Trump’s sweeping global tariffs last week. Trump has responded by lashing out at the court and imposing a blanket 15% levy on imports. On Wednesday, US Trade Representative Jamieson Greer stated that the US President plans to raise this rate to 15% for many countries in the coming days. This authority is limited to a 150-day window unless extended by Congress. US policy fog could exert some selling pressure on the Greenback against the JPY. On the other hand, the Bank of Japan (BoJ) policy uncertainty could weigh on the Japanese Yen and act as a tailwind for the pair. BoJ Governor Kazuo Ueda said on Thursday that while rate hikes will continue if economic forecasts are met, the central bank will wait for data from the March and April meetings to make further decisions. Additionally, Japanese Prime Minister Sanae Takaichi has expressed reservations about further rate hikes, citing concerns over economic impact. According to Reuters, a majority of economists expect the policy rate to reach 1.0% by the end of June 2026. Japanese Yen FAQs The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors. One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ…
Filed under: News - @ February 26, 2026 1:18 am