USD/JPY firms as trade tensions and Fed caution weigh on Dollar
The post USD/JPY firms as trade tensions and Fed caution weigh on Dollar appeared on BitcoinEthereumNews.com. USD/JPY extends decline, trading near the lower end of the range as safe-haven flows support the Yen ahead of the Fed decision. Trade frictions between the US and Japan, along with softening US growth data and geopolitical risks, dampen risk sentiment. Technical signals turn bearish with the pair capped below key moving averages, and momentum indicators suggesting further downside. USD/JPY is trading weaker on Tuesday, hovering in the 142.00 area as safe-haven demand strengthens the Japanese Yen. Risk aversion has intensified as global investors respond to elevated geopolitical uncertainty, including tensions in the Middle East, renewed trade frictions, and shifting global central bank dynamics. Market participants are awaiting the outcome of Wednesday’s Federal Reserve decision, with a particular focus on the tone of Chair Jerome Powell’s guidance. In Washington, US President Donald Trump held a joint press conference with Canadian Prime Minister Mark Carney, downplaying the need to renegotiate USMCA and instead focusing on broader trade priorities. Trump’s comments about China’s economic struggles and his administration’s active negotiations with 17 trading partners added to market unease. Meanwhile, Treasury Secretary Scott Bessent confirmed that the US had formally rejected Japan’s request for tariff relief, maintaining the 10% and 14% levies on Japanese exports. Japan’s efforts to push for a comprehensive trade deal remain stalled, heightening uncertainty for bilateral relations. US economic data continue to offer a mixed picture. The March trade deficit widened significantly, likely contributing to a downward revision in Q1 GDP figures. Although the April ISM services PMI rose to 51.6 from 50.8, internal components such as activity and employment disappointed. The Atlanta Fed’s GDPNow model now forecasts Q2 growth at 1.1%, a sharp drop from earlier projections. Meanwhile, the Fed is expected to hold interest rates steady on Wednesday, but the market will closely watch Powell’s press conference…
The post USD/JPY firms as trade tensions and Fed caution weigh on Dollar appeared on BitcoinEthereumNews.com.
USD/JPY extends decline, trading near the lower end of the range as safe-haven flows support the Yen ahead of the Fed decision. Trade frictions between the US and Japan, along with softening US growth data and geopolitical risks, dampen risk sentiment. Technical signals turn bearish with the pair capped below key moving averages, and momentum indicators suggesting further downside. USD/JPY is trading weaker on Tuesday, hovering in the 142.00 area as safe-haven demand strengthens the Japanese Yen. Risk aversion has intensified as global investors respond to elevated geopolitical uncertainty, including tensions in the Middle East, renewed trade frictions, and shifting global central bank dynamics. Market participants are awaiting the outcome of Wednesday’s Federal Reserve decision, with a particular focus on the tone of Chair Jerome Powell’s guidance. In Washington, US President Donald Trump held a joint press conference with Canadian Prime Minister Mark Carney, downplaying the need to renegotiate USMCA and instead focusing on broader trade priorities. Trump’s comments about China’s economic struggles and his administration’s active negotiations with 17 trading partners added to market unease. Meanwhile, Treasury Secretary Scott Bessent confirmed that the US had formally rejected Japan’s request for tariff relief, maintaining the 10% and 14% levies on Japanese exports. Japan’s efforts to push for a comprehensive trade deal remain stalled, heightening uncertainty for bilateral relations. US economic data continue to offer a mixed picture. The March trade deficit widened significantly, likely contributing to a downward revision in Q1 GDP figures. Although the April ISM services PMI rose to 51.6 from 50.8, internal components such as activity and employment disappointed. The Atlanta Fed’s GDPNow model now forecasts Q2 growth at 1.1%, a sharp drop from earlier projections. Meanwhile, the Fed is expected to hold interest rates steady on Wednesday, but the market will closely watch Powell’s press conference…
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