Tensions between the U.S. and Japan are rising again. If no deal is reached, confidence in Japan’s export sector could deteriorate, limiting BoJ policy options and pushing USD/JPY higher. However, if broader global trade uncertainty escalates, risk sentiment may deteriorate and the yen will regain its safe-haven bid.


The Australian dollar is particularly vulnerable in that scenario, as it's heavily exposed to China and global risk flows. A breakdown in equities or trade optimism could send AUD/JPY notably lower, making this a tactical risk-off short setup.

SHORT AUDJPY

Jul 03 2025