2025.01.27 [January 27] Yen strengthens on risk aversion due to Trump tariffs. Trade war concerns intensify.
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Recap of previous trading day (January 24)
On Friday of last week, the USDJPY declined after the Bank of Japan announced a rate hike to 0.50%, reaching a low of 154.84 around GMT 05:30.
When BOJ Governor Kazuo Ueda did not mention specific timing for additional rate hikes during his press conference at GMT 06:30, the yen's strengthening paused. The price reached a high of 156.57 around GMT 13:00 before stabilizing, and trading for the week closed at 155.92.
Recap of the Tokyo market and outlook going forward
Today the USDJPY saw yen buying due to risk aversion after President Trump announced a 25% tariff on Colombia, with plans to raise it to 50% within a week. The price reached a low of 155.28 around GMT 01:00. As of GMT 04:00, it is trading in the upper-155 yen range.
Looking at the 1-hour chart of the USDJPY (as of GMT 04:00, January 27), the price has been moving significantly up and down within a range of 156.75 to the upper 154 range, showing a continued lack of clear direction.
(20-period Bollinger Band, showing ±1 and ±2 standard deviations)
The main economic indicators for today are as follows:
- GMT 15:00 U.S. December New home sales
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