{"id":42635,"date":"2026-02-24T13:37:54","date_gmt":"2026-02-24T05:37:54","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=42635"},"modified":"2026-02-24T13:37:54","modified_gmt":"2026-02-24T05:37:54","slug":"yen-weakens-as-tariff-turbulence-returns","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-ca\/analysis\/yen-weakens-as-tariff-turbulence-returns\/","title":{"rendered":"Yen Weakens as Tariff Turbulence Returns"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"573\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/Yen1-1024x573.webp\" alt=\"\" class=\"wp-image-42637\"\/><\/figure>\n\n\n\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>USD\/JPY trades at 155.235, up 0.39%.<\/li>\n\n\n\n<li>Dollar index rises 0.2% to 97.90 amid tariff uncertainty.<\/li>\n\n\n\n<li>Yen pressured by trade tensions and China export controls.<\/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 softened on Tuesday as markets reassessed the fallout from renewed uncertainty surrounding US trade policy. USD\/JPY climbed to <strong>155.235 (+0.39%)<\/strong>, reflecting a firmer US dollar and a cautious tone across global markets.<\/p>\n\n\n\n<p>The dollar index rose <strong>0.2% to 97.90<\/strong>, recovering from earlier weakness as China and Japan reopened from holidays and President Donald Trump warned against countries retreating from recently negotiated trade deals.<\/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\">China assessing US Supreme Court tariff ruling; says &quot;fighting is harmful&quot; <a href=\"https:\/\/t.co\/iABfGM2gHf\">https:\/\/t.co\/iABfGM2gHf<\/a> <a href=\"https:\/\/t.co\/iABfGM2gHf\">https:\/\/t.co\/iABfGM2gHf<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/2025897195350679886?ref_src=twsrc%5Etfw\">February 23, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The Supreme Court\u2019s decision to strike down Trump\u2019s emergency tariffs briefly unsettled markets. However, the administration quickly imposed a new <strong>15% levy<\/strong> under a different legal framework, reigniting trade uncertainty. Trump also signalled that countries that \u201cplay games\u201d could face even higher duties.<\/p>\n\n\n\n<p>Adding pressure to the yen, China announced export controls targeting Japanese companies, highlighting deteriorating regional trade relations.<\/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\">China has blacklisted 20 Japanese firms including affiliates of Mitsubishi Heavy, ramping up tensions with Tokyo <a href=\"https:\/\/t.co\/l56kRUhbwk\">https:\/\/t.co\/l56kRUhbwk<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/2026121659820745152?ref_src=twsrc%5Etfw\">February 24, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Separately, reports suggested US authorities led so-called \u201crate checks\u201d last month to support the yen without a formal request from Tokyo, a development that raised questions about coordinated currency stability efforts.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Fed Outlook and Global Shifts<\/h2>\n\n\n\n<p>Renewed trade uncertainty comes as investors reassess global growth prospects and central bank policy paths. The Federal Reserve is widely expected to keep rates on hold until at least June. Fed Governor Christopher Waller indicated openness to maintaining current policy if upcoming labour data confirms economic resilience.<\/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\">Federal Reserve Governor Christopher Waller said his decision on whether to support an interest-rate cut at the US central bank\u2019s next policy meeting will hinge on upcoming labor-market data. <a href=\"https:\/\/t.co\/JLk3rJZzKJ\">https:\/\/t.co\/JLk3rJZzKJ<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/2025919661422916029?ref_src=twsrc%5Etfw\">February 23, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Elevated US yields continue to support the dollar, maintaining upward pressure on USD\/JPY. Meanwhile, geopolitical risks remain elevated, with reports of <a href=\"https:\/\/t.co\/mGD4cPrfXa\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\">US diplomatic staff reductions<\/a> in Beirut amid rising concerns over potential military escalation involving Iran.<\/p>\n\n\n\n<p>The European Parliament has also postponed a vote on a US trade deal, underscoring the broader ripple effects of renewed tariff tensions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Technical Analysis<\/h2>\n\n\n\n<p>USDJPY is trading near <strong>155.24<\/strong>, up roughly 0.4% on the session, as the pair attempts to stabilise following its recent pullback from the <strong>159.45<\/strong> high.<\/p>\n\n\n\n<p>The broader uptrend remains intact on the daily timeframe, but price action over the past few weeks reflects a corrective phase rather than a clean continuation move.<\/p>\n\n\n\n<p>The pair is currently hovering around the short-term moving averages, with the <strong>5-day (154.95)<\/strong> and <strong>10-day (154.02)<\/strong> turning slightly higher.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/1_image-26-1024x474.jpg\" alt=\"\" class=\"wp-image-42636\"\/><\/figure>\n\n\n\n<p>The <strong>20-day (154.72)<\/strong> sits close to current price, while the <strong>30-day (155.49)<\/strong> remains just overhead, forming a near-term resistance zone around <strong>155.50\u2013156.00<\/strong>. This clustering suggests the market is in a transitional phase, with momentum gradually rebuilding but not yet fully bullish.<\/p>\n\n\n\n<p>Immediate support lies near <strong>153.00\u2013153.50<\/strong>, followed by stronger structural support around <strong>151.50\u2013152.00<\/strong>, where buyers previously stepped in during the January correction.<\/p>\n\n\n\n<p>A sustained move above <strong>156.00<\/strong> would strengthen upside momentum and shift focus back toward <strong>158.00\u2013159.50<\/strong>, while a failure to hold above 153.00 could reopen downside pressure in the short term.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Cautious Outlook<\/h2>\n\n\n\n<p>USD\/JPY remains supported by dollar resilience and policy divergence, but gains may be capped if trade volatility intensifies or if geopolitical risks trigger stronger safe-haven flows into the yen.<\/p>\n\n\n\n<p>A sustained move above <strong>156.70<\/strong> would strengthen the bullish case and reopen the path toward the January high near <strong>159.45<\/strong>. Conversely, renewed intervention rhetoric from Japanese authorities or softer US data could pressure the pair back toward <strong>153.00<\/strong>.<\/p>\n\n\n\n<p>For now, the bias remains cautiously bullish above short-term moving averages, with trade headlines and US data likely to dictate near-term direction.<\/p>\n\n\n\n<p><strong>Learn more about trading <a href=\"https:\/\/www.vtmarkets.com\/forex\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Forex Pairs<\/a> on VT Markets <a href=\"https:\/\/www.vtmarkets.com\/Insights\/\" target=\"_blank\" rel=\"noopener\" title=\"\">here<\/a>.<\/strong><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>USD\/JPY rises to 155.23 as renewed US tariff tensions and dollar strength pressure the yen. Resistance near 156.70 in focus. | VT Markets<\/p>\n","protected":false},"author":64,"featured_media":42637,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[10,45],"class_list":["post-42635","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-ca\/wp-json\/wp\/v2\/posts\/42635","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=42635"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/42635\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/42637"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=42635"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=42635"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=42635"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}