Ella 
The Japanese yen (JPY) retreated after hitting a multi-month high against the U.S. dollar (USD) during Thursday’s Asian session, although any meaningful downside still appears elusive. A slight improvement in global risk sentiment – as evidenced by a broadly positive tone in stock markets – is seen weakening demand for the safe-haven yen. Additionally, the US dollar (USD) rebounded slightly from near multi-year lows, contributing to the USD/JPY pair’s intraday rebound of more than 100 pips from the 141.60 area.
However, uncertainty over U.S. President Donald Trump’s tariff announcements, the rapidly escalating U.S.-China trade war and concerns about a global recession could keep a lid on market optimism. Moreover, while the Bank of Japan (BoJ) may hold off on raising interest rates due to concerns about the economic damage caused by Trump’s tariffs, market expectations for further rate hikes should continue to provide support for the yen. Hopes for a U.S.-Japan trade deal could also help limit further yen depreciation.
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