What are the expected movements of the yen after the wage data

The US dollar opened this week higher against most currencies Trump carried out his threats and imposed tariffs on Canada, Mexico and China on Saturday during the markets ' holiday period, but it seems that Trump continues to use tariffs as a means of pressure and bring countries to the negotiating table and get some of his requests.

After some positive talks on Monday, tariffs on Mexico and Canada were suspended for 30 days, which led to a decline in the US dollar, and we are still waiting for a call from Trump and Chinese President Xi, but there is still some cautious optimism that continues to weigh on the US dollar.

The Japanese yen rose strongly against most currencies today, especially after we got Japanese wage data today, which exceeded expectations by a large margin, as it rose by 0.6% year-on-year thanks to the increase in bonuses in the winter, and government officials expressed optimism about the growth momentum of raising wages.

This made traders increase their bets on further rate hikes by the Bank of Japan this year, with pricing in just over 30 basis points by the end of the year.

It is worth noting that the Bank of Japan raised interest rates by 25 basis points at its last meeting, but did not provide much in terms of future guidance other than that it said it would raise the interest rate if economic conditions and prices continue to improve.