USD/JPY slides below 157.00 on Trump tariff uncertainty, risk-off flows

USD/JPY declined 0.5% to 156.85 during Asian trading as uncertainty surrounding President Trump's tariff policies weighed on both currencies, with safe-haven yen flows outpacing dollar weakness. Markets remain anxious about potential trade disruptions after conflicting signals from the administration regarding implementation timelines for proposed tariffs on China and other trading partners. The uncertainty has dampened risk appetite, benefiting the yen while pressuring high-beta currencies. Technical analysis shows USD/JPY breaking below the 157.00 psychological support, with the next target at 156.50 (Friday's low). The pair's decline accelerated after failing to hold above the 200-hour moving average at 157.20. Traders are also positioning ahead of Thursday's Bank of Japan meeting, where officials may provide guidance on future rate hikes. The combination of trade uncertainty and potential BoJ hawkishness could extend yen strength in the near term.