EUR/JPY moves above 156.50, the rise seems limited due to the increase in the probabilities of lifting of the Boj types

• The EUR/JPY can be seen while the operators hope that Japan in front of Trump’s commercial tariffs.
• President Trump reaffirmed his commitment to address the US trade deficit with Japan.
• German Chancellor Olaf Scholz declared that the EU could react “in an hour” if the US imposes the proposed tariffs.

The EUR/JPY stops its three -day run streak, quoting around 156.70 during the Asian session on Monday. The rise in the currency crossing could be attributed to the concerns that Japan would also be an eventual objective of the commercial tariffs of the US president, Donald Trump.

President Trump told reporters aboard the Air Force One on Sunday that he plans to impose a 25% tariff on all imports of steel and aluminum, without specifying the affected countries. Trump also declared that additional reciprocal tariffs would be announced in mid -week and would be implemented almost immediately, reflecting the tariff rates established by each country, according to Reuters.

During a press conference on Friday with Japanese Prime Minister Shigeru Ihiba, the US president Donald Trump reaffirmed his commitment to address the US trade deficit with Japan, which currently amounts to approximately 65,000 million dollars per year. Trump also pointed out Japan’s promise to duplicate his defense expenditure by 2027 compared to his first mandate. In addition, Japan will begin to import new American liquefied natural gas shipments.

The Japanese Yen (JPY) could be strengthened due to the growing expectations that the Bank of Japan (Boj) uploads interest rates again this year. An increase in the yields of Japanese government bonds (JGB) could further support the JPY of lower performance.

However, the EUR/JPY cross rise could be limited in the midst of growing concerns about possible deflationary pressures in the Eurozone due to the expected US tariffs , with the markets now predicting that the deposit rate could fall to 1.87% for December.

In response to Trump’s announcement on new tariff plans, German Chancellor Olaf Scholz declared that the European Union (EU) could react “in an hour” if the US imposes the proposed tariffs. Separately, Bernd Lange, head of the European Parliament Committee, suggested that to avoid a commercial war, the EU is open to reduce its 10% import tax on vehicles at a rate closer to the 2.5% tariff imposed by USA