Yen Rises Amid BoJ Rate Hike Bets, Global Trade Uncertainty

(RTTNews) - The Japanese yen strengthened against other major currencies in the Asian session on Tuesday, amid rising consensus that the Bank of Japan (BoJ) will continue hiking interest rates in 2025

Traders remain cautious and concerned about a global trade war while they await signs of progress from U.S. President Donald Trump's trade talks. Potentially adding to the worries, China has threatened to retaliate against any countries that reach a trade deal with the U.S. at the expense of China's interests.

Some reports suggest that the Trump administration is preparing to put pressure on other countries to restrict trade with China in exchange for U.S. tariff exemptions.

Additionally, markets were shaken by Trump's latest assault on Federal Reserve Chair Jerome Powell.

In the Asian trading now, the yen rose to a 5-day high of 187.82 against the pound, from yesterday's closing value of 188.49. The next possible upside target for the yen is seen around the 184.00 region.

Against the U.S. and the Canadian dollars, the yen advanced to more than a 7-month high of 140.10 and a 1-1/2-month high of 101.43 from Monday's closing quotes of 140.88 and 101.84, respectively. If the yen extends its uptrend, it is likely to find resistance around 139.00 against the greenback and 100.00 against the loonie.

Against the euro and the Swiss franc, the yen climbed to 161.63 and 173.33 from yesterday's closing quotes of 162.20 and 174.10, respectively. On the upside, 156.00 against the euro and 167.00 against the franc are seen as the next resistance levels for the yen.

Against the Australia and the New Zealand dollars, the yen edged up to 90.12 and 84.28 from Monday's closing quotes of 90.47 and 84.53, respectively. The yen may test resistance around 85.00 against the aussie and 79.00 against the kiwi.

Looking ahead, Eurozone Government Budget to GDP 2024 is set to be published at 5:00 am Et in the Europeans session.

In the New York session, Canada PPI data and raw materials prices for March, U.S. flash consumer confidence data for April and U.S. Richmond Fed manufacturing index for April, are slated for release.