"The USD/JPY pair is experiencing a noticeable decline toward the 158 level at this sensitive stage, a development I view as a natural outcome of the convergence of multiple economic and geopolitical factors occurring simultaneously, rather than merely a temporary corrective move. In my view, the pair's move toward the 157.85 area primarily reflects the broad-based weakness currently affecting the US dollar, driven by escalating trade tensions between the United States and the European Union."
"I believe that the recent drop in the US Dollar Index below 99.20 is not just a technical event, but a fundamental signal that markets have begun to reprice the political and economic risks associated with US protectionist policies. The imposition of new 10% tariffs on European Union countries and the United Kingdom, in a politically sensitive context, reinforces my concerns that the US administration could push the global economy into a phase of heightened trade uncertainty."
"From my reading of the currency performance heatmap, it is evident that dollar weakness is not limited to the Japanese yen alone, but extends against most major currencies. This confirms that the current pressure on the dollar is broad in nature rather than being confined to the USD/JPY pair specifically. Nevertheless, the Japanese yen appears to be a relative beneficiary of this environment, despite domestic challenges, due to its traditional role as a safe-haven currency during periods of geopolitical and trade-related stress."
USD/JPY is declining toward 158 as multiple economic and geopolitical factors converge rather than as a temporary correction. The pair's move toward 157.85 reflects broad US dollar weakness driven by escalating US-EU trade tensions. A drop in the US Dollar Index below 99.20 signals market repricing of political and economic risks from US protectionist policies. New 10% tariffs on EU countries and the UK increase global trade uncertainty, undermining the dollar's reserve status and prompting investor diversification. The Japanese yen benefits as a relative safe-haven, supporting short-term gains despite domestic constraints.
Read at London Business News | Londonlovesbusiness.com
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