The post Japanese Yen retreats from two-month high touched against USD on Friday appeared on BitcoinEthereumNews.com.

The Japanese Yen is pressured by renewed worries about Trump’s trade tariffs. A modest USD strength provides a goodish lift to the USD/JPY pair on Monday. The divergent BoJ-Fed policy expectations should help limit deeper JPY losses. The Japanese Yen (JPY) attracts some sellers at the start of a new week as US President Donald Trump’s tariff threats revive fears that Japan would also be an eventual target of new US levies. Apart from this, a modest US Dollar (USD) strength, lifts the USD/JPY pair to the 152.00 mark during the Asian session. Against the backdrop of the upbeat US jobs report released on Friday, expectations that Trump’s policies could boost inflation and limit the scope for the Federal Reserve (Fed) to ease policy provide a modest lift to the Greenback.  Any meaningful JPY depreciation, however, seems elusive in the wake of the growing acceptance that the Bank of Japan (BoJ) will hike interest rates again this year, which continues to push Japanese government bond (JGB) yields higher. The resultant narrowing of the rate differential between Japan and other major central banks should, in turn, limit the downside for the lower-yielding JPY. Hence, it will be prudent to wait for strong follow-through JPY selling before confirming that the USD/JPY pair has bottomed out in the near term.  Japanese Yen bulls turn cautious amid Trump’s fresh tariff threats  US President Donald Trump said on Sunday that he will announce an additional 25% tariffs on all steel and aluminum imports into the US, and will also announce reciprocal duties over what he sees as unfair trading practices.  Worries that Trump’s protectionist policies would put upward pressure on inflation, along with Friday’s upbeat US job data, should allow the Federal Reserve to keep rates on hold, which, in turn, boosts the US Dollar. …

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Filed under: News - @ February 10, 2025 3:12 am