USD/JPY Forecast: Japanese Yen Rises on Safe-Haven Demand as Trade Concerns Grow
Forex news today shows that the Japanese yen is gaining strength as traders look for safer assets due to fresh global trade concerns. The USD/JPY forecast remains cautious, with the pair holding just above the 146.00 level.
The yen is getting support because investors are worried about possible US tariffs on Japanese goods, which is creating uncertainty in the market. In times of global risk, traders often turn to the Japanese yen as a safe-haven currency, helping it stay strong.
Also, Japan’s recent Producer Price Index (PPI) showed a slight drop, which points to weak inflation. This adds to expectations that the Bank of Japan (BoJ) will not raise interest rates soon. Meanwhile, the US dollar remains under pressure as traders wait for more updates on interest rate cuts from the Federal Reserve.
Even though global stock markets are showing some recovery, concerns about trade tensions are keeping the yen in demand. Traders are now watching upcoming US jobless claims data and Fed comments for the next direction in the USD/JPY pair.
Impact:
The USD/JPY might stay under pressure if trade tensions continue and the Fed leans toward rate cuts. A surprise from US data could briefly support the dollar.