USD/JPY surges above ¥150 as Bulls take control and yen weakness
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The US dollar surged past the psychologically important ¥150.00 level on Monday, extending its gains into early Tuesday with a fresh three-week high at ¥150.94. The breakout reflects a confluence of factors, from easing trade rhetoric in the US to persistent monetary policy divergence with Japan. After a period of range-bound trading, the pair is once again showing directional conviction.
The move was catalyzed by signals from Washington that the upcoming April 2 tariff review may result in a more selective and moderate application of reciprocal trade measures. President Trump indicated a potential softening of stance, suggesting that “a lot of countries” could receive exemptions, and that the tariffs would likely focus on specific sectors rather than entire industries. The rhetoric reassured markets, reducing fears of a broad-based escalation in global trade tensions — a dynamic that tends to support risk sentiment and the dollar.
Meanwhile in Japan, Bank of Japan Governor Kazuo Ueda offered little reassurance to yen bulls during his appearance in parliament. Ueda reiterated the BoJ's readiness to adjust monetary easing if underlying inflation trends toward the 2% target, but the lack of a clear timeline or concrete policy shift did little to shift expectations. Markets continue to price in a very gradual path to normalization, reinforcing the yield gap in favor of the dollar. The yen has weakened 2.7% over the past two weeks, falling from ¥146.60 to current levels near ¥150.40. The sustained dollar strength and passive BoJ stance underline a key macro theme: the continuation of carry trades and investor preference for higher-yielding currencies, particularly the greenback in an environment of global monetary divergence.
With USD/JPY back above ¥150.00, a level closely watched by policymakers and traders alike, markets will be alert for signs of verbal intervention from Japanese authorities. Still, unless the BoJ shifts decisively or US rate expectations soften meaningfully, the trend appears firmly dollar-positive in the near term. Traders should monitor the April 2 tariff announcement and any further commentary from the BoJ as critical catalysts for the next leg in this currency pair.
The move was catalyzed by signals from Washington that the upcoming April 2 tariff review may result in a more selective and moderate application of reciprocal trade measures. President Trump indicated a potential softening of stance, suggesting that “a lot of countries” could receive exemptions, and that the tariffs would likely focus on specific sectors rather than entire industries. The rhetoric reassured markets, reducing fears of a broad-based escalation in global trade tensions — a dynamic that tends to support risk sentiment and the dollar.
Meanwhile in Japan, Bank of Japan Governor Kazuo Ueda offered little reassurance to yen bulls during his appearance in parliament. Ueda reiterated the BoJ's readiness to adjust monetary easing if underlying inflation trends toward the 2% target, but the lack of a clear timeline or concrete policy shift did little to shift expectations. Markets continue to price in a very gradual path to normalization, reinforcing the yield gap in favor of the dollar. The yen has weakened 2.7% over the past two weeks, falling from ¥146.60 to current levels near ¥150.40. The sustained dollar strength and passive BoJ stance underline a key macro theme: the continuation of carry trades and investor preference for higher-yielding currencies, particularly the greenback in an environment of global monetary divergence.
With USD/JPY back above ¥150.00, a level closely watched by policymakers and traders alike, markets will be alert for signs of verbal intervention from Japanese authorities. Still, unless the BoJ shifts decisively or US rate expectations soften meaningfully, the trend appears firmly dollar-positive in the near term. Traders should monitor the April 2 tariff announcement and any further commentary from the BoJ as critical catalysts for the next leg in this currency pair.