USD/JPY tumbles to near 143.50 amid tariff worries

• USD/JPY slumps to near 143.55 in Friday's early Asian session. 
• An escalating trade war and uncertainty boost the safe-haven demand, supporting the Japanese Yen. 
• The hawkish stance of the BoJ contributes to the JPY's upside. 

The USD/JPY pair extends its downside to around 143.55 during the Asian trading hours on Friday, pressured by the weaker US Dollar (USD). The uncertainty surrounding the tariff policy and the concerns over the global economic slowdown encourage investors to safe-haven currency like the Japanese Yen (JPY). 

US President Donald Trump said on Wednesday he would temporarily lower duties on dozens of countries but ramped up the tariff on China to 125% from 104%. The looming threat of both global and US recession, driven by aggressive trade policies and uncertainty over future measures, drags the Greenback lower. 

Traders anticipate that the US Federal Reserve (Fed) will resume cutting interest rates in June and probably lower its policy rate by a full percentage point by the end of the year. According to the CME FedWatch tool, derivatives markets now imply a 44% possibility that the Fed will cut rates at its next meeting on May 6-7, up from 14% a week ago.

Meanwhile, the hawkish stance from the Bank of Japan (BoJ) marks a big divergence in comparison to the prospects for multiple interest rate cuts by the Federal Reserve (Fed). This, in turn, provides some support to the JPY and acts as a headwind for the pair. 

Japan's Finance Minister Shunichi Kato said early Friday that foreign exchange rates should be set by markets, adding that excess FX volatility negatively impacts the Japanese economy.