Ella 
In the Asian market on Thursday, USD/JPY expanded its losses for the second consecutive trading day, trading around 154.30. A lower US dollar is weighing on USD/JPY. The yen may be supported by Japan’s trade balance turning into a surplus in March.
Japan’s total merchandise trade balance swung to a surplus of 366.5 billion yen from a previous deficit of 377.8 billion yen. In addition, as geopolitical tensions intensify in the Middle East, market risk aversion may prompt safe-haven capital inflows, and the yen may strengthen as a result.
On Wednesday, U.S. President Joe Biden delivered a speech at the Center for the U.S. Steel Industry in Pittsburgh, advocating greater suppression of China’s steel industry. According to CBS News, Biden urged U.S. Trade Representative Katherine Tai to explore the possibility of tripling the existing 7.5% tariff rate on Chinese steel and aluminum. This development could benefit Japanese markets and provide support for the Japanese Yen (JPY).
Traders expect Japan’s Statistics Bureau to release Japan’s national consumer price index (CPI) data on Friday, with market expectations leaning toward a moderate rise in consumer prices in March.
On the other hand, the Federal Reserve (FED) is expected to maintain high interest rates for a longer period of time, supported by a strong U.S. economy and continued high inflation, which has balanced the downward pressure on the USD/JPY.
