USD/JPY remains under bearish pressure due to US dollar weakness and safe-haven demand for the Japanese Yen.
Yen Regains Safe-Haven Status as US Dollar Sentiment Shifts
The US dollar has weakened against the yen despite rising US Treasury yields. This shift reflects fears of capital flight triggered by Trump’s unpredictable tariff policies. Investors now treat the US dollar as a risk asset, while the yen has regained its safe-haven appeal. As a result, political headlines and risk sentiment drive the pair more than economic data.
USD/JPY remains under pressure, and rallies are short-lived if broader trade tensions stay unresolved. Markets remain wary of Trump’s inconsistent policy shifts, which create uncertainty and reduce investor confidence in the dollar.
The 4-hour chart for USD/JPY shows that the pair is trading within a descending broadening wedge pattern. A break above $149.50 could push the pair to higher levels, while strong short-term support remains at the $141 level.
