USD/JPY pressured by Trump's 25% tariffs on Japanese imports

USD/JPY declined 0.6% to 160.85 following President Trump's announcement of 25% tariffs on Japanese imports, intensifying trade tensions between the two nations. The yen strengthened as investors sought safe-haven assets amid escalating trade uncertainty. The tariff announcement caught markets off-guard, potentially disrupting supply chains and impacting Japanese exporters' competitiveness. Technical analysis shows USD/JPY breaking below the 161.00 support level, with next support at 160.50. The US Dollar Index fell 0.3% as traders reassessed the potential economic impact of renewed protectionist policies. Japanese officials have yet to respond, but retaliatory measures could further complicate the trade relationship. Near-term sentiment remains bearish for the pair, with additional downside possible if trade tensions escalate. Traders should monitor upcoming diplomatic developments and any policy responses from the Bank of Japan.