The Japanese yen experienced gains against major currencies as concerns surrounding the trade war resurfaced, prompting investors to seek refuge in safe-haven assets. Market participants are increasingly worried about the stalled progress in trade talks between the U.S. and China, leading to increased risk aversion.

Heightened uncertainty regarding the global economic outlook has further fueled demand for the yen. Analysts suggest that the yen’s appreciation reflects a broader shift in investor sentiment, with a greater emphasis on capital preservation amidst growing geopolitical and economic risks.

The yen’s performance is also influenced by:

• Monetary policy decisions by the Bank of Japan
• Global interest rate differentials
• Overall risk appetite in financial markets

Traders are closely monitoring developments in the trade negotiations and any signals from central banks that could impact the yen’s trajectory. The currency’s strength is expected to persist as long as uncertainty remains elevated.