The Japanese yen remains depressed against the dollar amid concerns about the new Trump tariff
- The Japanese yen weakens more against the US dollar amid concerns about Trump’s commercial tariffs.
- Bets can limit more BOJ prices and risky moods from losses in safe armed JPY.
- The US restriction rate of Japan may also contribute to the maximum USD/JPY pair.
The Japanese yen (JPY) remains depressed against its American counterpart for the second consecutive day on Monday and retracts more than one month that was touched last week. Fears regarding economic repercussions of the commercial definitions of US President Donald Trump turns into a major factor that contributes to the relative JPY performance. However, the JPY slice inside the day is still cushing amid increasing acceptance that the Bank of Japan (BOJ) will raise interest rates again.
In fact, the BOJ summary showed that policy makers discussed the possibility of raising interest rates more. This comes in addition to the high basic inflation in Tokyo at the fastest annual pace in a year and remains alive to further tighten the BOJ policy. In addition, the differences that narrow the interest rates between Japan and the rest of the world, along with the motivation behind the risks, can provide support for the safe JPY and help reduce any other inconvenience step.
Japanese bulls still have upper bulls amid bets for additional BOJ rates
- US President Donald Trump signed an order on Saturday to impose a 25 % tariff on Canadian and Mexican imports and 10 % on goods from China starting on Tuesday.
- Canadian Prime Minister Justin Trudeau, President of Mexico Claudia Shinbom, and the Chinese Ministry of Foreign Affairs, were quick to respond to the upcoming moves.
- The US dollar gathered in all fields and progresses to more than two years, which was touched in January, which helps the dollar pair to build on Friday.
- The summary of the views of the Bank of Japan, which was released earlier this Monday, showed that policy makers discussed the possibility of raising prices more at the January meeting.
- BOJ members repeated that it will be necessary to continue walking rates, if economic activity and prices remain on the right track, although it is not mentioned to increase the Japanese yen.
- Japanese Finance Minister Katsunobo Kato said the government intends to monitor the impact of the Trump tariff on its currency amid concerns about the repercussions.
- The United States-Japan produces a difference near the lowest level in several weeks. This, in addition to the motive of the risk, can help reduce the decrease in the value of JPY in the short term.
- Traders are now looking for important US macro versions for this scheduled week at the beginning of a new month, starting with the ISM manufacturing directors index later today.
- However, the focus will remain attached to the American monthly recruitment data – known as the NFP salary report due on Friday.
USD/JPY needs to exceed 156.25, which is the highest level in the past week to support prospects for more gains
From a technical perspective, Goodish recovered last week from the 50 % decline in the December Rally to January and the subsequent movement in favor of the upcoming merchants. However, any other force exceeding the mark of 156.00 may face some obstacles near Swing High last week, in about 156.25 regions. The ongoing power that goes beyond the aforementioned septum can get a new seizure from a short motor collection and raise the USD/JPY pair to the 156.70-156.75 on its way to the round shape 157.00 and the horizontal barrier 157.60. The momentum can extend beyond that towards the mark of 158.00, above it can aim to re-test the multiple summit, about 158.85-158.90 on January 10.
On the other hand, the psychological brand appears to be 155.00 now protects the direct negative side 154.55-154.50 horizontal area and round shape 154.00. This is closely followed by the monthly basin in January, about 153.70 areas that were touched last Monday. A convincing break will be seen at the bottom of the latter as a new operator for the dumpling traders and makes the US dollar pair/JPY vulnerable to accelerating the fall towards 153.30 support. Immediate prices can eventually decrease to 153.00 marks.
Japanese questions yen
The Japanese yen (JPY) is one of the most trading currencies in the world. Its value is widely determined by the performance of the Japanese economy, but more specifically through the policy of the Bank of Japan, and the differential between the revenues of Japanese and American bonds, or risk morale among merchants, among other factors.
One of the states of the Bank of Japan is the control of the currency, so its movements are the key to the yen. BOJ interfered directly in the currency markets sometimes, and generally to reduce the value of the yen, although it refrains from doing so often due to the political concerns of its main commercial partners. Boj Ultra-LOOSE’s monetary policy between 2013 and 2024 caused the yen to decrease against its main peers due to the difference in policy between the Bank of Japan and other major central banks. Recently, relaxation has gradually gave this super -supported policy some support for the yen.
Over the past decade, the BoJ’s position of adhering to a high -minded monetary policy has has expanded a difference in politics with other central banks, especially with the American Federal Reserve. This is to support the expansion of the difference between American and Japanese bonds for a period of 10 years, which preferred the US dollar against the Japanese yen. BOJ’s decision in 2024 to gradually abandon the policy of the super taste, as well as discounts in the interest rate in other major central banks, narrows this difference.
The Japanese yen is often seen as a safe investment. This means that in times of stress on the market, investors are likely to put their money in the Japanese currency because of its reliability and supposed stability. Distinguished times are likely to enhance the value of the yen against other currencies that are seen as more dangerous for investment.
Customs fees are common questions
Customs duties are useful customs duties on some imports of goods or a category of products. Customs duties are designed to help local producers and manufacturers to be more competitive in the market by providing the price feature on similar goods that can be imported. Definitions are widely used as fever tools, along with commercial barriers and import shares.
Although customs tariffs and taxes generate government revenues to finance public goods and services, they have many differences. Customs duties are pre -paid in the entry port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while customs duties are paid by importers.
There is a school of thought between economists regarding the use of definitions. While some argue that definitions are necessary to protect local industries and address commercial imbalances, others see them as a harmful tool that can push prices up in the long term and lead to a harmful trade war by encouraging customs tariffs.
During the period before the presidential elections in November 2024, Donald Trump explained that he intends to use the customs tariff to support the American economy and American producers. In 2024, Mexico, China and Canada accounted for 42 % of the total imports of the United States. During this period, Mexico emerged as the best source with $ 466.6 billion, according to the American Statistical Office. Thus, Trump wants to focus on these three countries when imposing definitions. It is also planned to use the revenues created by definitions to reduce personal income taxes.
