USD/JPY rises 300 pips from the Trump tariff reversal ...Middle East

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USD/JPY rises 300 pips from the Trump tariff reversal

USD/JPY is back to where it was in the hours after the 'Liberation Day' announcement in a huge turn.

The yen is dropping hard on a jump in risk assets that has the Nasdaq up nearly 10% following a Trump post saying he was dropping all global tariff rates to 10% except for China in order to have negotiations.

    I would expect this momentum to continue perhaps into the weekend but there are still some big questions here on tariffs and the global economy. This still puts the effective US tariff rate at extreme levels and there are major questions about whether that 10% level is a floor.

    I think that all that argues that the yen remains a valuable safe haven.

    This article was written by Adam Button at www.forexlive.com.

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