The US tariff rhetoric caused sharp currency fluctuations. The dollar strengthened by 0.3% against the Canadian dollar and by 0.2% against the euro. The Japanese yen attracted particular attention, falling again to a recent low against the dollar. The weakening comes amid the failure of trade talks between Tokyo and Washington, and may also be linked to new tariffs on Japanese cars. Japanese companies are reacting with restraint, but are gradually cutting production and export prices. The Bank of Japan expects a further deterioration in the growth outlook, and investors are now tuning in to the fact that rate hikes are delayed until at least spring 2026.Should the upside continue, USD/JPY is likely to face significant seller activity in the 148.00 area.