USD/JPY falls as Yen and Euro strengthen on improved trade relations

The Japanese Yen and Euro have posted significant gains against the US Dollar as positive developments in global trade relations boost risk sentiment. USD/JPY declined 0.6% to 149.20, marking its lowest level in two weeks, while EUR/USD climbed 0.5% to 1.0920. The yen's appreciation reflects unwinding of carry trades and speculation that the Bank of Japan may adjust its ultra-loose monetary policy sooner than expected. Progress in international trade negotiations has reduced geopolitical tensions, diminishing demand for the dollar as a safe haven. The Dollar Index fell 0.4% to 103.50, breaking below key technical support. EUR/USD now targets resistance at 1.0950, with support at 1.0890, while USD/JPY faces strong support at 149.00. Market participants are closely monitoring upcoming trade talks and central bank communications for further directional cues.