Japanese Yen Recovers in NA Session Amid Renewed Focus on US-Japan Trade Talks

Japanese Yen Recovers in NA Session Amid Renewed Focus on US-Japan Trade Talks

The Japanese Yen (JPY) showed a notable recovery on Thursday, cutting earlier losses to trail the G10 currencies by only 0.2% against the US Dollar (USD) during the North American session. The currency rebounded after headlines linked to tariffs initially weighed it down.

Trade Negotiations Back in Focus

According to Scotiabank, Japan’s chief trade negotiator has arrived in Washington, D.C. for a fourth round of trade discussions, following the U.S. court ruling that invalidated former President Donald Trump's "Liberation Day" tariffs. This development is expected to shape JPY sentiment in the short term, especially if progress is made on tariff rollbacks.

"The issue is set to dominate as Japan seeks to advance dialogue post-court ruling," said Scotiabank analysts.

Domestic Factors Come Into Play

Japan’s bond markets have stabilized, with yield spreads remaining flat. This leaves more room for domestic economic indicators to affect USD/JPY price action. Traders are now eyeing upcoming data releases, including:

• Employment statistics
• Tokyo Consumer Price Index (CPI)
• Industrial production
• Retail sales

These indicators may shift expectations around Bank of Japan (BoJ) policy moves, potentially increasing JPY volatility heading into June.

Technical & Fundamental Watch

• Resistance (USD/JPY): 146.00
• Support: 144.30
• Trend Bias: Neutral to bullish for JPY if data surprises positively

Internal Links for Tredu.com:

• Latest USD/JPY Chart & Analysis
• Japan Economic Calendar & CPI Preview
• Scotiabank FX Outlook – Weekly Report
• Explained: What the US Court Ruling Means for Global FX