USD/JPY slides lower as risk aversion grips markets to start the week

That sees USD/JPY undo its advance from last week as it now falls to below 149.00, down 0.7% on the day. This comes as bonds are keeping bid amid the more defensive risk mood in markets. 10-year Treasury yields are down nearly 7 bps to 4.184%. That is nearly its lowest levels in three weeks.

It's all about Trump tariffs and for now, markets are cowering in fear ahead of Liberation Day on 2 April.

While there was some hope last week that Trump may look towards a more targeted approach on tariffs, that has been dashed in the new week now following this report here. This is igniting recession fears and further uncertainty on the global economy.

So far, other major currencies are not showing all too much change. The dollar is keeping steadier across the board but it is the Japanese yen that is holding more of a bid today, owing to the fall in bond yields.