USD/JPY rises as Trump trade tensions weaken yen, GBP/USD tumbles

The dollar index gained 0.30% today, with USD/JPY advancing as the yen retreated following President Trump's statement that a trade deal with Japan is unlikely. The escalating trade tensions between the US and Japan have pressured the safe-haven yen, allowing the dollar to strengthen across the board. GBP/USD experienced a sharp decline, amplifying dollar gains as sterling faced its own headwinds. The combination of trade uncertainty and risk-off sentiment has shifted market dynamics in favor of the greenback. Technical indicators suggest USD/JPY could test recent highs if trade rhetoric intensifies, while support levels remain intact above key moving averages. Traders should monitor any developments in US-Japan trade negotiations and potential retaliatory measures that could further impact currency movements in the coming sessions.