Forex News: Yen Falls Amid Ongoing Japan Political Uncertainty

Yen Falls Amid Ongoing Japan Political Uncertainty

(RTTNews) - The Japanese yen weakened against other major currencies in the Asian session on Tuesday, investors are nonetheless concerned about Japan's fiscal health, despite hopes that Japanese Prime Minister Sanae Takaichi will propose additional stimulus to help the economy.

In addition, Japan's poor Q4 GDP growth numbers appear to have dampened anticipations of an early rate increase by the Bank of Japan (BoJ), which appears to further depress the value of the yen.

Asian shares traded mixed amid mounting concerns over AI-related disruptions, lingering uncertainty about US President Donald Trump's tariff policies and escalating tensions between the US and Iran.

Following the Supreme Court's decision striking down most of Trump's sweeping global tariffs, Trump said he would be raising worldwide tariffs to the "fully allowed" and "legally tested" 15 percent level from the 10 percent.

Trump also said any Country that wants to "play games" will be met with a "much higher tariff, and worse, than that which they just recently agreed to."

In the Asian trading today, the yen fell to 4-day lows of 209.40 against the pound and 155.31 against the U.S. dollar, from yesterday's closing quotes of 208.67 and 154.64, respectively. If the yen extends its downtrend, it is likely to find support around 214.00 against the pound and 158.00 against the greenback.

Against the euro and the Swiss franc, the yen dropped to 182.84 and 200.11 from Monday's closing quotes of 182.28 and 199.61, respectively. The yen is likely to find support around 186.00 against the euro and 203.00 against the franc.

Against Australia, the New Zealand and the Canadian dollars, the yen edged down to 109.67, 92.56 and 113.34 from yesterday's closing quotes of 109.12, 92.13 and 112.92, respectively. The next possible downside target for the yen is seen around 110.00 against the aussie, 95.00 against the kiwi and 115.00 against the loonie.

Looking ahead, Canada manufacturing sales data for January, U.S. ADP weekly employment data, U.S. Redbook report, U.S. S&P/Case-Shiller home price index for December, U.S. Consumer Board's consumer confidence for February, U.S. Richmond Fed manufacturing index for February, U.S. wholesale inventories for December and U.S. Dallas Fed services index for February are slated for release in the New York session.

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