Yen Holds Losses Amid US Tariffs, BOJ Policy Speculation

The yen held around 152 per dollar on Tuesday after a previous decline, pressured by the dollar's strength following new US tariffs. Trump’s 25% steel and aluminum tariff, imposed without exceptions, raised fears of an inflation-driven trade war, potentially limiting Fed rate cuts. The yen gained over 2% last week on expectations of more BOJ hikes. BOJ board member Naoki Tamura signaled a policy rate increase to at least 1% in fiscal 2025, while strong wage and household spending data reinforced the hawkish outlook.

The key resistance level appears to be 153.85, with a break above it potentially targeting 154.90 and 156.00. On the downside, 151.90 is the first major support, followed by 151.25 and 149.20 if the price moves lower.