- The Japanese yen continues to lose Earth amid concerns about Trump’s commercial tariffs.
- Fed’s Hawkish’s position revives the demand for the US dollar and provides support to the dollar pair.
- The increasing bets of another BOJ rate in March should limit any meaningful JPY chip.
Japanese yen is drifting for the third day in a row on Wednesday and slides to the lowest level in one week against his American counterpart during the Asian session. Fears that US President Donald Trump’s irrefutable tariff for commodity imports may endanger Japanese economic stability, along with a generally positive tone around stock markets, undermining the safe JPY. Regardless of this, the appearance of some US dollar (USD) raises the pair of the dollar/JPY dates back to the mid -153.00s in the last hour.
Jerome Powell, Chairman of the Federal Reserve (Fed), said on Tuesday that the US Central Bank does not rush to reduce prices amid fears that Trump’s commercial policies can feed inflation, which in turn helps to revive the demand for the US dollar. Moreover, Trump’s mood comments hope to narrow the acute difference in Japan’s rate and contribute to driving flows away from low JPY. However, the increasing acceptance that the Bank of Japan (BOJ) will be interested in interest rates again can limit any other losses in JPY.
Japanese yen controls control amid fears that Trump’s tariff can threaten Japanese economic stability
- US President Donald Trump has signed executive orders to impose tariff fees of 25 % on steel and aluminum imports from March 12. Trump also indicated that he will consider imposing an additional tariff on cars, pharmaceutical preparations and East computer, and their promises to a broader mutual tariff to suit other fees governments charge American products.
- This declaration raises the risk of increasing global trade tensions and threatens to negatively affect the Japanese economy. This, in turn, is widely seen on the Japanese yen and helps the dollar pair to build a week-week-old Goodish transition from the SUB-151.00 levels, or less than two months was touched last week.
- Japanese Finance Minister Katsunobo Kato said earlier on Wednesday that he would establish the impact of the American definitions on the Japanese economy and respond appropriately. Separately, Japanese Minister of Industry, Yuji Moto, asked the United States to exclude Japan from the steel and aluminum tariffs. This, however, is not mentioned to provide any rest period for JPY.
- Federal Reserve Chairman Jerome Powell, in statements to the Senate Banking Committee on Tuesday, shocked a more honest tone and described the economy in general with a strong labor market. Powell added that inflation is closer to a 2 % goal, but it is still somewhat high and indicated that policy makers are not in a hurry to pay interest rates.
- The Governor of Bank of Japan, Kazo Oda earlier today, reiterated that the Central Bank will manage the monetary policy appropriately in order to achieve the goal of inflation by 2 %. Moreover, the recent wage growth data and expansion of inflationary pressure in the economy is due to the increase in the high rate of the BOJ at the March Policy meeting.
- Traders are now looking to issue the latest numbers of consumer inflation in the United States, which, along with Powell Certificate in Congress, will lead the US dollar and a USD/JPY husband. The US consumer price index is seen and increases by 2.9 % year on year in January, and the basic consumer price index (except for food and energy prices) comes at a rate of 3.1 % on an annual basis.
The US dollar/JPY is likely to attract new sellers and remain wrapped near Fibo by 38.2 %. Level, about 154.00 marks
From a technical perspective, a continuous outbreak can be considered over the obstacle of the meeting of 152.75 as a major operator for the upscale merchants and the prospects for more appreciation during the day. The aforementioned area includes the level of Fibonacci’s tradition by 23.6 % from the fall of January to February, which is the simple average movement of SMA, which, in turn, should serve as a pivotal point for the USD/JPY husband.
Meanwhile, the daily graph fluctuations – despite their recovery – are still retaining negative lands. This, in turn, indicates that any later move is likely to attract new sellers and remain covered near the 154.00 mark. The latter coincides with Fibo 38.2 %. The level, above, the pair of the dollar/JPY can accelerate the recovery towards the 154.70-154.75 on its way to the psychological brand 155.00.
On the other side, the round shape appears to be 153.00, followed by a meeting 152.75 protects the direct downside. The convincing collapse below the latter would reaffirm negative expectations in the short term and withdraw the dollar pair/JPY under the 152.00 brand, towards the next relevant support near the 151.30-151.25 region. Immediate prices can eventually decrease to 151.00 levels, or less than two months were touched last Friday.
Japanese questions yen
The Japanese yen (JPY) is one of the most trading currencies in the world. Its value is widely determined by the performance of the Japanese economy, but more specifically through the policy of the Bank of Japan, and the differential between the revenues of Japanese and American bonds, or risk morale among merchants, among other factors.
One of the states of the Bank of Japan is the control of the currency, so its movements are the key to the yen. BOJ interfered directly in the currency markets sometimes, and generally to reduce the value of the yen, although it refrains from doing so often due to the political concerns of its main commercial partners. Boj Ultra-LOOSE’s monetary policy between 2013 and 2024 caused the yen to decrease against its main peers due to the difference in policy between the Bank of Japan and other major central banks. Recently, relaxation has gradually gave this super -support policy some support for the yen.
Over the past decade, the BoJ’s position of adhering to a high -minded monetary policy has has expanded a difference in politics with other central banks, especially with the American Federal Reserve. This is to support the expansion of the difference between American and Japanese bonds for a period of 10 years, which preferred the US dollar against the Japanese yen. BOJ’s decision in 2024 to gradually abandon the policy of the super taste, as well as discounts in the interest rate in other major central banks, narrows this difference.
The Japanese yen is often seen as a safe investment. This means that in times of stress on the market, investors are likely to put their money in the Japanese currency because of its reliability and supposed stability. Distinguished times are likely to enhance the value of the yen against other currencies that are seen as more dangerous for investment.
Customs fees are common questions
Customs duties are useful customs duties on some imports of goods or a category of products. Customs duties are designed to help local producers and manufacturers to be more competitive in the market by providing the price feature on similar goods that can be imported. Definitions are widely used as fever tools, along with commercial barriers and import shares.
Although customs tariffs and taxes generate government revenues to finance public goods and services, they have many differences. Customs duties are pre -paid in the entry port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while customs duties are paid by importers.
There is a school of thought between economists regarding the use of definitions. While some argue that definitions are necessary to protect local industries and address commercial imbalances, others see them as a harmful tool that can push prices up in the long term and lead to a harmful commercial war by encouraging customs tariffs.
During the period before the presidential elections in November 2024, Donald Trump explained that he intends to use the customs tariff to support the American economy and American producers. In 2024, Mexico, China and Canada accounted for 42 % of the total imports of the United States. During this period, Mexico emerged as the best source with $ 466.6 billion, according to the American Statistical Office. Thus, Trump wants to focus on these three countries when imposing definitions. It is also planned to use the revenues created by definitions to reduce personal income taxes.