The Japanese yen rose in Asian trade on Friday against a basket of major rivals, extending gains for the third straight session against the dollar and about to touch five-month highs on strong haven demand.
Yen’s gains are also boosted by a steep drop in US 10-year treasury yields as traders await the US payrolls report, expected to offer fresh pricing for the odds of a Fed rate cut.
The Price
The USD/JPY fell 0.35% today to 147.44 yen per dollar, with a session-high at 148.16.
The yen rose 0.6% on Thursday against the dollar, hitting a five-month high at 147.31 amid rising risk aversion.
Weekly Trades
The yen is up over 2% so far this week against the dollar, on track for the second weekly profit in three weeks on the unwinding of the yen carry trades.
Safe Havens
US stock indices resumed their huge losses on Thursday with drops towards four-month lows amid concerns about trade war uncertainties.
Wall Street is heading for the third weekly loss in a row, and the heftiest since September 2025 as Donald Trump continues to impose then delay 25% tariffs on Canada and Mexico.
US Yields
US 10-year treasury yields fell 0.7% on Friday to five-month lows at 4.108%, heaping pressure on the dollar.
It comes as investors assess the impact of the latest US tariffs on Mexico and Canada, which were then quickly rolled back temporarily for a month.
According to the Fedwatch tool, the odds of a 0.25% Fed rate cut in March stood at 9%.
Now traders await the all-important US payrolls report for February later today, crucial for gauging the future path of US monetary policies.
