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The USD/JPY pair trades on a flat note near 158.20 during the early Asian session on Wednesday. The pair steadies as US President Donald Trump’s renewed tariff threats offset political uncertainty in Japan. Traders will closely monitor Trump’s speech at the World Economic Forum in Davos, Switzerland, later on Wednesday.  Trump said over the weekend that he would impose an additional 10% import tariff from February 1 on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and the United Kingdom (UK) until the US is allowed to buy Greenland. White House threats to Europe over the future of Greenland triggered the “Sell America” trade, which exerted some selling pressure on the Greenback.  On the other hand, the Japanese Yen (JPY) fell overnight as a selloff in Japanese government bond markets accelerated. Yields on Japan’s 30- and 40-year bonds climbed by over 25 basis points (bps), the biggest move since US President Donald Trump’s Liberation Day tariffs rattled global markets last year. Japan’s Prime Minister Sanae Takaichi’s plans to cut taxes and boost spending are raising doubts about the financial health of one of the world’s most indebted governments. This, in turn, could drag the JPY lower against the US Dollar (USD) in the near term.  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 has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political…

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Filed under: News - @ January 20, 2026 11:21 pm