Meanwhile, USD/JPY sees mixed reactions as trade policy uncertainty impacts the US Dollar’s appeal. The US Dollar Index (DXY) trades around 99.00, but Trump’s erratic tariff announcements erode investor confidence. Despite higher US dollar readings, USD/JPY struggles to build strong upward momentum and faces resistance near the 144.00 level. If trade tensions escalate again, safe-haven flows could boost the Japanese Yen and push USD/JPY back toward 142.00.
China’s Finance Ministry warned that tariffs threaten global economic stability, adding pressure on AUD/USD and USD/JPY. Sluggish growth could hit Australian exports and further depress the AUD. At the same time, growing fears of a broader slowdown could strengthen the Yen as a safe-haven asset. The market is waiting for China’s data and US reports to gauge the next move in these pairs. The release of Nonfarm payroll on Friday will be the key event for these markets.
The 4-hour chart for USD/JPY indicates that the price is trading within a descending broadening wedge pattern, exhibiting strong volatility around the long-term support level. The 140 level marks a critical long-term support area, where a break below it would continue the bearish trend. The price has failed to break below 140, indicating a rebound from this level. However, the failure to break above 144 suggests that the overall trend remains negative.
