Takaichi Confirms Trump's Concerns on Weak Yen Pressure
Japan's Prime Minister Takaichi revealed that US President Trump expressed concerns about the weak yen during their summit meeting, putting pressure on US trade. This adds to earlier concerns flagged by Japan's Finance Minister Katayama.
Takaichi emphasized that there was no discussion on financial or fiscal policy between the two leaders, suggesting that Washington is not leaning on Tokyo over monetary policy. However, this reinforces the notion that the yen is becoming a political and trade issue for both sides.
The USD/JPY pair has fallen below 158.00, with traders now dealing with a more uncomfortable political risk in addition to higher Treasury yields supporting the broader dollar backdrop. The pair's decline threatens to invalidate yesterday's technical breakout, with key moving averages providing near-term support at around 156.91.