As threats of U.S. tariffs ripple around global markets, the Japanese yen has emerged as the clear winner and that has put major USD/JPY levels in focus.

The safe-haven yen extended its strong run, climbing to a two-week high on the dollar, which was in turn weighed down by sagging Treasury yields.

Investors are wondering about the next potential target for tariffs under President-elect Donald Trump, after he pledged new levies on Canada, Mexico and China earlier this week.

USD/JPY broke and closed under the Nov.
19 153.28 low, on Tuesday, signalling a likely shift in the overall bias back to the downside.
The negative outlook will be confirmed if there is a daily close under the 152.71 Fibo, a 23.6% retracement of the 139.58 to 156.76 (September to November) EBS rise.

Big downside levels which are coming into focus include the 150.20 Fibo, a 38.2% retrace of the same 139.58 to 156.76 EBS rise and the 150.00 psychological level.

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