Japanese Yen eases slightly from two-week top
The Japanese Yen (JPY) recovers slightly from a two-week low touched against a broadly stronger US Dollar (USD) during the Asian session on Thursday, though it lacks bullish conviction. News that a US federal court blocked President Donald Trump's "Liberation Day" tariffs from going into effect boosts investors' confidence and triggers a fresh wave of the global risk-on trade. This continues to undermine demand for traditional safe-haven assets, including the JPY.
Moreover, worries about the debt load in Japan weighing on the JPY. The USD, on the other hand, benefits from Wednesday's hawkish FOMC Minutes, which contributes to the USD/JPY pair's bid tone for the fourth straight day. Traders, however, are still pricing in the possibility that the Fed will lower borrowing costs further. This marks a big divergence in comparison to hawkish Bank of Japan (BoJ) expectations and helps limit losses for the lower-yielding JPY.
Source: FXStreet