Ella 
The Japanese yen (JPY) traded lower against the U.S. dollar at the start of a crucial week, reversing Friday’s strong move to its highest level since Oct. 21. US Treasury yields regained positive traction after US President-elect Donald Trump threatened to impose 100% tariffs on BRICS countries. This, in turn, helped revive demand for the U.S. dollar (USD) and was a key factor driving outflows from the lower-yielding Japanese yen.
On top of this, underlying bullishness in the stock market further weakened safe-haven demand for the yen. Still, ongoing geopolitical tensions and rising bets that the Bank of Japan (BoJ) will cut interest rates again in December should limit the spread of the yen’s losses. Traders may also avoid making aggressive directional bets, choosing instead to wait for key U.S. macro data releases this week, starting with the ISM Manufacturing Purchasing Managers Index later on Monday.
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