The tariff rate that had risen to 145% against China, albeit with a 90-day grace period, was reduced to 30%, revealing that the economic fiasco since April 2, “Liberation Day,” was a completely ridiculous and meaningless fiasco.
It may be that even if one wanted to exclude China from the U.S. economy, one could not do it.

The dollar momentarily hit the 147-yen level on reports that “the U.S. is not seeking to weaken the dollar in tariff negotiations,” but in the Asian markets, the Korean won rose again and the dollar weakened along with it. In other words, no one trusts yesterday’s report.
The dollar fell on the report that South Korea’s Ministry of Planning and Finance “confirmed that foreign exchange talks with the U.S. have taken place. The report came out around 6:00 p.m., but the yen had already been appreciating before that, and some speculators who knew what was going on probably bought the yen before the report came out.

The U.S.-China trade talks reached a dramatic agreement, and the dollar/yen market saw a huge short-covering event, but its effect lasted only one day. The Nikkei 225 also soared as U.S. semiconductor stocks soared,
However, players who knew in advance about the news of the U.S.-Korea currency talks would have sold off the Nikkei.

We do not know whether the U.S. administration actually intends to weaken the dollar. When the U.S.-China trade talks were finalized, it was assumed that risk would turn on, but the Nikkei was unable to break above the ¥148 level. It can be said that the market is reasonably heavy.
The thought that the U.S. might take a weaker dollar policy is not going away, so we may have to be careful here and bet on a weaker dollar.

This week, there is a strong possibility that a Japan-U.S. finance ministers’ meeting will be held by Finance Minister Kato and U.S. Treasury Secretary Bessent. In that case, we assume that there will be some kind of discussion on foreign exchange, although it will not be officially recognized.
In the unlikely event that there are talks on foreign exchange rates, which could accelerate the yen’s move higher, it would be difficult to hold long positions in the dollar/yen. However, as shown by Japan’s announced GDP results, domestic demand is extremely weak.

The pressure to strengthen the yen is coming from the U.S., while the pressure to weaken the yen is coming from within Japan. In the short term, there will be strong yen appreciation pressure. However, if the political situation in the U.S. changes, a weaker yen could be waiting in the wings.
It is not easy to trade as the market is more likely to move due to politics, but volatility is more profitable. This is a news-driven market, so we want to pay attention to the news and be flexible.