Ella 
The Japanese yen (JPY) started the new week on a positive note, rising to its highest level since September against a broadly weaker U.S. dollar (USD) during the Asian session. Optimism over U.S.-Japan trade talks and underlying bearish sentiment in global financial markets continued to drive flows toward the safe-haven yen. Separately, data released on Friday showed Japan’s core inflation accelerated in March, opening the door for further rate hikes by the Bank of Japan (BoJ), which was seen as another factor supporting the yen.
Meanwhile, yen bulls appeared unfazed by reports that the Bank of Japan will cut its growth forecasts as markets worry about the potential economic impact of U.S. President Donald Trump’s steep tariffs. On the other hand, the dollar fell to a two-year low due to uncertainty over Trump’s trade policies, which undermined investors’ confidence in U.S. economic growth. Even relatively hawkish comments from Federal Reserve (Fed) Chairman Jerome Powell on Friday failed to impress dollar bulls much, suggesting that the path of least resistance for USD/JPY remains to the downside.
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