USD/JPY Movement Around 144 Yen and the Impact of the U.S.-China Summit

At 3 PM, the Dollar Fluctuates Around 144 Yen, Trump's Remarks Have Limited Impact

On June 4, 2025, at 3 PM, the USD/JPY was trading at the upper 144 yen range, slightly higher from the previous day's late session in New York. The U.S. economic indicators were strong, leading to a dominant buying trend for the dollar. However, ahead of the upcoming U.S.-China summit and the U.S. employment report on June 6, there was limited movement to push the dollar higher, with the U.S. economic indicators surpassing expectations being a key factor.

At 3 PM, USD/JPY fluctuated around the 144 yen mark. Although the dollar carried over gains from the previous day’s New York session, movements to push the price higher were restrained before the U.S.-China summit and the release of U.S. employment statistics. After the announcement of strong U.S. economic indicators, the buying momentum for the dollar expanded. However, the uncertainty over the U.S.-China trade talks between the leaders of both nations became a market concern and impacted the dollar's movement. This influence led to the USD/JPY being sold off back to the mid-143 yen level.

Impact of U.S.-China Summit and Employment Report

The market is closely watching the U.S.-China summit and the U.S. employment report, both scheduled for June 6. The outcome of the trade talks between President Trump and President Xi Jinping remains unclear. Trump’s remark that "a trade agreement with China is very difficult" was reported, which caused the USD/JPY to retreat to the upper 143 yen level once again.

U.S. economic indicators have been robust, especially the JOLTS job openings data, which exceeded expectations, leading to increased buying of the dollar. Additionally, strong movements in the U.S. stock market also supported the dollar. However, the downward revision of the OECD's economic outlook caused the dollar's buying momentum to be restrained, and USD/JPY struggled near the 144 yen level.

Impact of the Trump Administration and Its Fluid Policy Direction

The policy direction of the Trump administration has had a significant impact on the market. In particular, Trump’s statement that “a trade agreement with China is very difficult” once again raised concerns in the market. As the U.S.-China trade war continues to affect the markets, the strength of the dollar has been somewhat curtailed due to the fluidity of U.S. economic policies and concerns over fiscal deterioration caused by large-scale tax cuts. As a result, the dollar has shown instability, and active buying has been limited.

Moreover, the upcoming U.S. employment report and inflation indicators will also have an impact. If these indicators are strong, they could serve as a trigger for further dollar buying. However, due to uncertainty surrounding U.S. policies, the buying of the dollar may remain restricted.

Market Reaction and Future Outlook

Going forward, if U.S. economic indicators continue to show strength, the dollar buying trend will likely become dominant again, and USD/JPY is expected to rise further. However, considering the instability of the Trump administration’s policy direction and the impact of tax cuts, dollar buying is likely to be limited, and excessive selling of the dollar is expected to be suppressed.

Currently, USD/JPY is trading around the 144 yen mark, and the release of U.S. economic indicators and employment reports will be crucial. The outcome of U.S.-China negotiations and other economic indicators such as the ISM Non-Manufacturing Index will have a significant influence on the movement of the dollar.

Current Exchange Rates

Summary: Market Trends and Outlook

The USD/JPY continues to trade around 144 yen, with the market focusing on U.S. economic indicators and U.S.-China trade negotiations. If the U.S. economy remains strong, dollar buying could lead the way, but concerns about the Trump administration's policy direction and the ongoing trade war are likely to limit dollar buying.

It is essential to pay close attention to the market trends and the upcoming U.S. economic indicators and employment reports. Specifically, the outcome of the U.S.-China negotiations and economic indicators like the ISM Non-Manufacturing Index will greatly influence the dollar's movement.