- USD/JPY moves higher to near 146.30 amid broader underperformance by the Japanese Yen.
- US President Trump threatens to impose 25% tariffs on imports from Japan and South Korea.
- Traders are likely to pare BoJ hawkish bets as Japan fails to close deal with the US during the tariff extension period.
The USD/JPY pair climbs to near 146.30 during the European trading session on Tuesday. The pair gains as the Japanese Yen (JPY) underperforms across the board, following the announcement of 25% reciprocal tariffs by United States (US) President Donald Trump on imports from Japan.
Japanese Yen PRICE Today
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the weakest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.11% | 0.19% | 0.22% | -0.20% | -0.71% | -0.23% | -0.11% | |
| EUR | 0.11% | 0.31% | 0.36% | -0.08% | -0.61% | -0.11% | 0.00% | |
| GBP | -0.19% | -0.31% | 0.06% | -0.39% | -0.92% | -0.42% | -0.30% | |
| JPY | -0.22% | -0.36% | -0.06% | -0.43% | -0.94% | -0.41% | -0.23% | |
| CAD | 0.20% | 0.08% | 0.39% | 0.43% | -0.54% | -0.03% | 0.10% | |
| AUD | 0.71% | 0.61% | 0.92% | 0.94% | 0.54% | 0.51% | 0.63% | |
| NZD | 0.23% | 0.11% | 0.42% | 0.41% | 0.03% | -0.51% | 0.12% | |
| CHF | 0.11% | -0.00% | 0.30% | 0.23% | -0.10% | -0.63% | -0.12% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).
On Monday, US President Trump unveiled new tariff rates for 14 countries that failed to ink a trade pact with Washington during the 90-day tariff pause. Out of them notable reading was 25% tariff on Japan and South Korea who are key trading partners of Washington.
The imposition of additional import duties on Japan by the US despite long trade negotiations between nations has pushed the Japanese Yen on the backfoot.
Additionally, US President Trump has also threatened to raise tariff further if countries retaliate.
The failure of US-Japan trade deal during the 90-day pause timeline has jeopardized market expectations that the Bank of Japan (BoJ) could raise interest rates again.
Meanwhile, the announcement of reciprocal tariffs by Donald Trump has also weighed on the US Dollar. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, corrects to near 97.35 from the weekly high of 97.67 posted on Monday.
Investors expect the tariff policy to be inflationary for the US economy as the impact of higher duties will be borne by domestic importers who will pass on them to end consumers. This scenario would restrict the Federal Reserve (Fed) from unwinding monetary policy restrictiveness.
