{"id":20231,"date":"2025-04-08T03:44:04","date_gmt":"2025-04-08T03:44:04","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=20231"},"modified":"2025-04-08T03:44:04","modified_gmt":"2025-04-08T03:44:04","slug":"yen-strengthens-as-safe-haven-demand-grows","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/yen-strengthens-as-safe-haven-demand-grows\/","title":{"rendered":"Yen Strengthens as Safe-Haven Demand Grows"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/yen5-1024x559.png\" alt=\"\" class=\"wp-image-17043\"\/><\/figure>\n\n\n\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>USD\/JPY retraced from a high of <strong>148.133<\/strong> to <strong>147.346<\/strong>, as safe-haven flows lifted the yen amid global trade tensions.<\/li>\n\n\n\n<li>Japan&#8217;s <strong>current account surplus hit a record high in February<\/strong>, driven by strong exports and weaker imports.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\"\/>\n\n\n\n<p>The Japanese yen found renewed strength on Tuesday, climbing back toward <strong>147 per dollar<\/strong> and reversing previous session losses. This shift came amid growing market anxiety over the deepening U.S. trade conflict and ahead of expected negotiations between Tokyo and Washington. The <strong>USD\/JPY pair<\/strong>, which touched a <strong>peak of 148.133<\/strong>, closed the session at <strong>147.346<\/strong>, reflecting a broad move toward safety assets.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The Japanese yen and Swiss franc strengthened as traders sought havens after US officials expressed their defiance over trade tariffs and indicated negotiations for any rate reductions will be prolonged <a href=\"https:\/\/t.co\/4op5EOAn1O\">https:\/\/t.co\/4op5EOAn1O<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1908999505216676274?ref_src=twsrc%5Etfw\">April 6, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>U.S. President <strong>Donald Trump confirmed plans to meet with Japanese officials<\/strong> for high-level trade discussions after a direct call with <strong><a href=\"https:\/\/www.reuters.com\/world\/japan\/japan-pm-ishiba-says-he-told-trump-rethink-tariff-policies-2025-04-07\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Prime Minister Shigeru Ishiba<\/a><\/strong>. U.S. Treasury Secretary <strong>Scott Bessent<\/strong> will lead the delegation, with talks expected to address a wide range of issues including <strong><a href=\"https:\/\/www.aljazeera.com\/news\/liveblog\/2025\/4\/7\/trump-tariffs-live-asian-european-shares-plunge-as-shockwaves-spread\" target=\"_blank\" rel=\"noopener\" title=\"\">tariffs<\/a>, non-tariff barriers, currency policies<\/strong>, and <strong>government subsidies<\/strong>. Despite these diplomatic overtures, Trump denied reports suggesting a delay to the upcoming reciprocal tariffs. Instead, he stated that levies \u201ccould remain in place indefinitely,\u201d maintaining pressure on global trade.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>On the 15-minute chart, <strong>USD\/JPY showed signs of exhaustion<\/strong> after peaking at 148.133. The pair reversed direction and began a slow decline, falling below the 5-period and 10-period moving averages. The <strong>MACD (12,26,9)<\/strong> also crossed to the downside, signalling a loss of bullish momentum. The next support appears near the <strong>147.00<\/strong> psychological level, with heavier downside possible if risk-off sentiment continues.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/image-8-1024x442.jpg\" alt=\"\" class=\"wp-image-20232\"\/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: USDJPY stalls after strong rally\u2014bulls losing steam near 148.13, as seen on the <\/em><em><a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a><\/em><\/p>\n\n\n\n<p>Trend watchers should note that while the <strong>pair has been in a broad uptrend since touching 144.551<\/strong>, this current pullback may reflect investor hesitation ahead of uncertain negotiations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Yen Supported by Domestic Fundamentals<\/h2>\n\n\n\n<p>Beyond the geopolitical headlines, the yen is also riding on solid macroeconomic data. <strong><a href=\"https:\/\/www.reuters.com\/markets\/asia\/japan-runs-record-current-account-surplus-2024-foreign-investment-returns-2025-02-10\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Japan\u2019s current account surplus surged to a record high in February<\/a><\/strong>, bolstered by <strong>export-led growth<\/strong> and a marked decline in import volumes. This reflects not just resilient demand for Japanese goods abroad, but also improved trade balance conditions that reinforce the underlying strength of the yen.<\/p>\n\n\n\n<p>These twin forces\u2014<strong>external risk aversion<\/strong> and <strong><a href=\"https:\/\/t.co\/4R691c6sUK\" target=\"_blank\" rel=\"noopener\" title=\"\">strong internal fundamentals<\/a><\/strong>\u2014are working in tandem to support the yen\u2019s recovery. The currency\u2019s traditional role as a safe haven is coming back into focus, especially as <strong>equity markets remain volatile<\/strong> and <strong>U.S. policy direction grows more unpredictable<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\">Cautious Outlook<\/h3>\n\n\n\n<p>The <strong><a href=\"https:\/\/t.co\/QOahtbRY7j\" target=\"_blank\" rel=\"noopener\" title=\"\">upcoming U.S.\u2013Japan trade dialogue<\/a><\/strong> presents a wildcard for the USD\/JPY outlook. A successful diplomatic outcome could temper demand for the yen, while failure\u2014or further tariff threats\u2014could intensify safe-haven flows. In the short term, the yen is likely to remain firm, especially if the S&amp;P 500 and other risk assets continue their bearish trajectories.<\/p>\n\n\n\n<p>Traders should keep a close eye on verbal cues from U.S. and Japanese officials, as well as technical levels near <strong>147.00<\/strong> and <strong>146.50<\/strong>, which may act as short-term supports. A break below these could open the door to a more extended retracement.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a><\/strong><strong> and <\/strong><strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a><\/strong><strong> now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Safe-haven flows lift the yen. Record current account surplus and looming U.S.\u2013Japan trade negotiations add to the currency\u2019s resilience. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":64,"featured_media":17043,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[10,45],"class_list":["post-20231","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-forex","tag-yen"],"acf":{"acf_article_selection_author":""},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/20231","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=20231"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/20231\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/17043"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=20231"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=20231"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=20231"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}