USD/JPY falls back to near 145.00 as USD gives up gains

• USD/JPY gives back initial gains and falls to near 145.00 amid uncertainty over Trump's tariff policy.
• The US court accused Trump of exceeding the President's authority in facilitating his tariff agenda.
• Japan's Akazawa is set to visit Washington for the fourth round of trade talks.

The USD/JPY pair retreats to near 144.90 during European trading hours on Thursday after facing stiff resistance above 146.00. The pair gives up early gains as the US Dollar falls back after investors reassessed the consequences of the United States (US) court's decision to strike down the tariff policy by President Donald Trump. However, the White House has appealed the decision.

The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, surrenders early gains and flattens around 99.90.

On Wednesday, the US Court of International Trade accused Trump of overstepping his authority to fulfill his tariff agenda. The court stated that Trump has violated the constitutional limit by exercising national emergency under the International Emergency Economic Powers Act (IEEPA) to fix trade imbalances. According to a report from the Associated Press (AP), longstanding trade deficits do not constitute a sudden emergency.

The event is expected to dampen the business confidence as owners started developing procurement and production strategies, assuming that tariffs will be persistent. Trump's intention to impose tariffs on his trading partners also aimed to boost manufacturing capacities domestically.

Meanwhile, investors also look cues about whether the White House will keep negotiating trade deals with its trading partners.

Japan's Trade Negotiator and Economy Minister Ryosei Akazawa stated earlier in the day that conduct ministerial talks on trade expansion and economic security cooperation, and will visit Washington for the fourth round of trade talks despite being "aware of the reports about the ruling", Bloomberg reported. Akazawa refused to comment on the impact of the US court striking down Trump's tariffs on "Japan-US negotiations" and said, "We [administration] intend to thoroughly examine the content of the ruling and its implications and respond appropriately."