USD/JPY climbs to 157.20 as Trump tariff ruling boosts risk sentiment

USD/JPY has advanced 0.4% to 157.20, gaining approximately 60 pips as a court ruling against Trump's trade tariffs improved risk appetite and weakened the safe-haven yen. The decision, which limits presidential authority to impose unilateral tariffs, reduced concerns about potential trade disruptions and prompted flows out of defensive assets. Japanese officials remain vigilant about yen weakness, with Finance Minister Suzuki reiterating readiness to intervene if currency moves become excessive. Technical momentum remains bullish, with the pair breaking above the 157.00 psychological level and targeting recent highs near 157.70. Support has formed at 156.80, coinciding with the 20-day moving average. The ruling's impact extends beyond currencies, with equity futures rising and commodity currencies strengthening. Traders should monitor any verbal intervention from Japanese authorities, as USD/JPY approaches levels that previously triggered official concern.