Japanese Yen struggles to capitalize on modest gains against USD amid tariff jitters
The Japanese Yen (JPY) sticks to modest intraday gains, which, along with the emergence of some US Dollar (USD) selling, keeps the USD/JPY pair depressed below mid-150.00s through the Asian session on Monday.
The growing acceptance that the Bank of Japan (BoJ) will hike interest rates further remains supportive of elevated Japanese government bond yields (JGB) and continues to act as a tailwind for the JPY.
Meanwhile, BoJ Governor Kazuo Ueda warned last week that the uncertainty about US President Donald Trump's tariff plans and their impact on the global economic outlook requires vigilance in setting monetary policy.
This is holding back the JPY bulls from placing fresh bets. The upside for the USD/JPY pair, however, seems limited as bets for more rate cuts by the Federal Reserve (Fed) undermine the USD.
Source: FXStreet