As concerns over mutual tariffs grew, the USD/JPY rose to the 146 yen level following an uptick in the U.S. 10-year Treasury yield.

【7/7Market Overview

During Tokyo time, the USD/JPY pair fell to144.22yen after 10 o'clock, but then buying interest led the recovery. President Trump said that countries complying with BRICS policies against the United States would face a 10% additional tariff, which accelerated the dollar rise against emerging market currencies, sending USD/JPY up to145.08yen temporarily. In European hours, concerns over the prospect of mutual tariffs remained, while the U.S.10-year yield rose, supporting dollar buying. In New York time, after the long weekend, the New York session followed the European momentum with dollar buying leading. As the 10-year yield rose to the4.39% range, USD/JPY climbed to as high as146.24yen. Additionally, President Trump published a letter he purportedly sent to Japan on his social media, stating that from8/1to25% tariffs would be imposed, and that sector-specific tariffs on autos, aluminum and steel would be treated separately from the current tariffs.

【7/8Market View