USD/JPY Down, Yen Gains On Trade Tensions, Cautious Global Sentiment
USD/JPY continues to trade lower as renewed safe-haven demand supports the Japanese Yen (JPY). Escalating trade tensions between the United States (US) and Japan, combined with investor caution ahead of the upcoming Federal Reserve (Fed) policy decision, weighed on the currency pair and contributed to broader market volatility.
At the time of writing, USD/JPY was trading at 142.68, down 0.71% on the day. The decline came despite a rise in US Treasury yields, with the 10-year note hitting 4.36%, its highest level in two weeks. The divergence highlights rising geopolitical and policy uncertainties, which have prompted defensive positioning across the currency market.
Source: FXStreet