The post Japanese Yen remains on the front foot amid risk-off mood, BoJ’s hawkish outlook appeared on BitcoinEthereumNews.com.

The Japanese Yen attracts some haven flows amid renewed trade war fears. The BoJ’s hawkish rate hike on Friday seems to underpin the JPY further. The narrowing US-Japan yield differential lends additional support to the JPY. The Japanese Yen (JPY) kicks off the new week on a positive note amid the global flight to safety, fueled by renewed trade war fears, and the Bank of Japan’s (BoJ) hawkish interest rate hike on Friday. Adding to this, hopes that spring wage negotiations will result in strong hikes again this year and allowing the BoJ to tighten its policy further turns out to be another factor underpinning the JPY. This, in turn, dragged the USD/JPY pair back below the mid-155.00s during the Asian session and closer to a one-month low, though a modest US Dollar (USD) uptick could help limit losses.  Meanwhile, bets that the Federal Reserve (Fed) will lower borrowing costs twice this year, bolstered by US President Donald Trump’s call for lower interest rates, trigger a fresh leg down in the US Treasury bond yields. The resultant narrowing of the US-Japan yield differential supports prospects for a further appreciating move for the lower-yielding JPY, suggesting that the path of least resistance for the USD/JPY pair remains to the downside. Traders now look forward to the US macro data to grab short-term opportunities later during the early North American session.  Japanese Yen draws support from a combination of factors US President Donald Trump imposed 25% tariffs on all imports from Colombia after the latter refused to allow two US military planes carrying deported migrants to land in the country.  Trump warned that the tariffs will increase to 50% by next week on further noncompliance, fueling trade war concerns and boosting demand for the traditional safe-haven Japanese Yen.  The anti-risk flow, along…

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Filed under: News - @ January 27, 2025 3:12 am