USD/JPY falls as Trump signals approval for Nippon Steel-US Steel merger

USD/JPY declined 0.4% to 154.20 as President Trump's apparent approval of Nippon Steel's acquisition of US Steel boosted risk sentiment and strengthened the yen. The deal, previously opposed by Trump during his campaign and blocked by President Biden, gained new life after Nippon Steel and US Steel filed lawsuits and improved their offer terms. This policy reversal signals potential openness to foreign investment in US industries, contrasting with earlier protectionist rhetoric. The yen's strength reflects improved Japan-US trade relations and reduced uncertainty around cross-border M&A activity. Technical indicators show USD/JPY breaking below the 154.50 support level, with next support at 153.80. The pair faces resistance at 155.00, coinciding with the 50-day moving average. Traders are monitoring whether this shift in trade policy stance will influence broader dollar sentiment and future foreign investment flows.