Analysis: The USD/JPY may still fall towards the 140 level.

For macro traders who have prepared for the "self-harm" caused by US policies on the US dollar, the decline of USD/JPY is a shrinking reflection of their weakening confidence in the US dollar. Faced with various seemingly contradictory information on how trade tariffs will develop, exchange rates have shown subconscious fluctuations, with USD/JPY just hitting its lowest level this month. The yen is also being driven by the narrowing of the US-Japan interest rate spread, heading towards 140 or even higher levels. Prime Minister Shinzo Abe of Japan and US President Trump are expected to meet during the interval of the June G-7 summit, and foreign exchange traders expect the yen to face upward pressure during the meeting. Long leveraged positions on the yen are high, but this does not prevent the USD/JPY from accelerating its momentum selling after breaking below the low of 141.97 on April 29th.