USD/JPY and USD/CNY React to Tariff Concerns with Divergent Moves

Foreign exchange markets experienced heightened volatility as tariff fears triggered mixed reactions across major currency pairs. USD/JPY climbed 0.8% to 152.75, while USD/CNY showed unusual resilience, declining 0.3% to 7.2150 despite trade concerns. The divergence highlights differing market perceptions of vulnerability to potential trade measures, with the yen weakening on risk-off flows while the yuan received support from PBOC intervention signals. Dollar index futures indicated continued strength at 99.60, reflecting the greenback's safe-haven appeal amid uncertainty. Japanese officials expressed concern about rapid yen depreciation, hinting at potential intervention if USD/JPY approaches 155.00. Meanwhile, Chinese authorities appear prepared to defend the yuan through various policy tools. Technical indicators suggest USD/JPY momentum remains bullish above 152.00 support, while USD/CNY faces resistance at 7.2500. Traders should prepare for continued volatility as trade policy clarity emerges throughout the week.