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USD/JPY slips as risk-off flows lift Yen after tariff ruling

  • USD/JPY falls as haven demand boosts the Japanese Yen amid equity weakness.
  • Dollar pressured after the Supreme Court of the United States blocks IEEPA tariffs.
  • Hawkish tone from Christopher Waller limits downside ahead of US confidence and ADP data.

The USD/JPY depreciates late during the North American session as US equity markets ended the session on the backfoot, while safe-haven assets like Gold and the Japanese Yen, are poised to extend its gains on Tuesday. At the time of writing, the pair trades at 154.71 after hitting a daily high of 155.04.

USD/JPY retreats toward 154.70 as softer equities and Supreme Court tariff decision weigh on the Dollar

The Greenback is on the backfoot following last Friday’s decision by the US Supreme Court to rule against IEEPA tariffs imposed by the Trump administration. This prompted traders to buy riskier assets, despite uncertainty regarding US trade policies.

Consequently, the US Dollar Index (DXY), which measures the buck’s value against a basket of six currencies, is down 0.07% at 97.73.

In the data-front, Factory Orders in December fell 0.7% MoM, reversing November’s 2.7% gain, due to weaker aircraft bookings. Hawkish comments by Fed Governor Christopher Waller capped the USD/JPY decline, after falling beneath the 154.00 milestone.

Waller said that he favors further easing by the US central bank but noted that if February’s number is stronger than January, this means that the labor market is solid, and that interest rates would remain steady.

On Tuesday, the economic docket will feature the Conference Board Consumer Confidence and the ADP Employment Change 4-week average. In Japan, the economic schedule remains absent, yet investors will eye the release of the Tokyo CPI and Industrial Production in January.

 USD/JPY Price Forecast: Technical outlook

Chart Analysis USD/JPY

In the daily chart, USD/JPY trades at 154.62. The simple moving averages continue to edge lower, with the latest reading at 156.00. Price action beneath this gauge keeps the near-term tone heavy. RSI at 47.21 (neutral) and easing from recent prints signals waning momentum. The descending trend line from 157.66 caps recoveries at 155.11. A bullish break would expose 155.87.

The rising trend line from 139.89 underpins the broader bias, offering support near 152.48. A nearer rising line from 152.10 reinforces bids into that area. RSI remains below the 50 midline, keeping momentum subdued. The simple moving average at 156.00 stays overhead and would cap recoveries on approach. A daily close above the descending cap would improve the tone, while a slip through trend-line support would expose further downside risk.

(The technical analysis of this story was written with the help of an AI tool.)

Japanese Yen Price This Month

The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies this month. Japanese Yen was the strongest against the British Pound.

USDEURGBPJPYCADAUDNZDCHF
USD1.51%2.32%0.99%1.53%-0.14%2.07%1.18%
EUR-1.51%0.80%-0.51%0.03%-1.62%0.55%-0.31%
GBP-2.32%-0.80%-1.34%-0.78%-2.40%-0.25%-1.11%
JPY-0.99%0.51%1.34%0.55%-1.11%1.06%0.19%
CAD-1.53%-0.03%0.78%-0.55%-1.65%0.51%-0.34%
AUD0.14%1.62%2.40%1.11%1.65%2.20%1.33%
NZD-2.07%-0.55%0.25%-1.06%-0.51%-2.20%-0.86%
CHF-1.18%0.31%1.11%-0.19%0.34%-1.33%0.86%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).

Author

Christian Borjon Valencia

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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