The Japanese Yen (JPY) drifts lower against its American counterpart for the second straight day on Monday and moves away from over a one-month high touched last week.

Concerns about the economic fallout from US President Donald Trump's trade tariffs to a large extent, overshadow the hawkish Bank of Japan (BoJ) Summary of Opinions and undermine the JPY. Apart from this, a broad-based US Dollar (USD) rally pushes the USD/JPY pair to the 156.00 neighborhood, or a four-day top during the Asian session.

Meanwhile, a rise in Tokyo's core inflation by the fastest annual pace in nearly a year keeps market expectations for further interest rate hikes by the Bank of Japan (BoJ).

Moreover, a fresh wave of the global risk-aversion trade, along with the narrowing interest rate differentials between Japan and the rest of the world, could offer support to the safe-haven JPY.

Adding to this, the recent decline in the US Treasury bond yields might hold back the USD bulls from placing aggressive bets and cap gains for the USD/JPY pair.

Source: FXStreet