Japanese Yen Advances Amid Concerns About Trump's Tariff Threats

(RTTNews) - The Japanese yen strengthened against other major currencies in the New York session on Tuesday, as U.S. President-elect Donald Trump pledged to impose tariffs on all imports from Mexico, Canada and China on his first day in office, raising fears of a renewed trade war.

In a post on his social media platform Truth Social, Trump said he would impose a 25 percent tariff on all products from Mexico and Canada on his first day in office, blaming the countries for the influx of illegal immigrants and illicit drugs into the U.S.

"This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!" Trump said.

Trump said in a subsequent post that he would also impose an additional 10 percent tariff on Chinese products, claiming the country has not done enough to stop the "massive amounts of drugs, in particular Fentanyl, being sent into the United States."

The yen rose to a 1-1/2-month high of 192.12 against the pound and 4-day highs of 160.38 against the euro and 172.58 against the Swiss franc, from early lows of 193.89, 162.01 and 174.02, respectively. The currency is poised to challenge resistance around 188.00 against the pound, 156.00 against the euro and 168.00 against the franc.

The yen climbed to a 1-1/2-month high of 98.89 against the aussie and more than a 2-month high of 89.19 against the kiwi, from early lows of 100.32 and 90.19, respectively. The next possible resistance for the yen is seen around 96.00 against the aussie and 86.00 against the kiwi.

The yen rose back against the greenback and the loonie and was trading at 153.39 and 108.88, respectively. This may be compared to an early fresh 2-week high of 152.97 and a fresh 5-week high of 108.57, respectively. Immediate resistance for the currency is seen around 151.00 against the greenback and 106.00 against the loonie.