Ella 
The Japanese yen (JPY) pared some of its intraday gains in the face of a generally weaker U.S. dollar (USD), helping USD/JPY rebound about 40-45 pips from the one-week low hit during the Asian session on Monday. Intensification of global risk aversion trade due to concerns over U.S. President Donald Trump’s so-called reciprocal tariffs on April 2 and geopolitical risks became a key factor supporting the safe-haven yen.
Elsewhere, strong consumer inflation data released in Tokyo on Friday reaffirmed market bets that the Bank of Japan (BoJ) will raise interest rates again in May. In contrast, markets expect the Federal Reserve (Fed) to soon resume its rate-cutting cycle amid concerns about a tariff-driven slowdown in the U.S. economy. This could further benefit the low-yielding Japanese yen and warrants caution before making any bullish bets on the USD/JPY pair.
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