The Japanese Yen (JPY) remains on the front foot against its American counterpart and keeps the USD/JPY pair depressed below the 148.00 round figure through the early European session on Thursday.

Worries about the potential economic fallout from US President Donald Trump's trade tariffs, along with bets that the Bank of Japan (BoJ) will continue raising interest rates amid a broadening inflation in Japan, underpin the safe-haven JPY.

Meanwhile, hawkish BoJ expectations keep the Japanese government bond yields elevated near a multi-year top.

The resultant widening of the rate differential between Japan and other countries turns out to be another factor benefiting the lower-yielding JPY.

The US Dollar (USD), on the other hand, languishes near a multi-month low amid bets for more interest rate cuts by the Federal Reserve (Fed) and exerts additional pressure on the USD/JPY pair.

Source: FXStreet