The Japanese yen strengthened against its major counterparts in the Asian session on Thursday amid risk aversion, as investors became cautious after U.S. President Donald Trump said that China "broke the deal" in the trade talks and so "they'll be paying".
Speaking at a rally in Florida, Trump blamed Beijing for collapse in trade talks, which prompted him to threaten to raise tariffs on Chinese goods.
Beijing has announced it would retaliate if tariffs rise.
China said that the communist country will take "necessary countermeasures" if the U.S. follows through on a planned increase in tariffs on Chinese goods on Friday.
Investors awaited a visit by Chinese Vice Premier Liu He for two days of negotiations in Washington this week for more direction.
The yen climbed to a 1-1/2-month high of 109.83 against the greenback and near a 2-month high of 142.87 against the pound, from its early lows of 110.12 and 143.25, respectively. The next key resistance for the yen is likely seen around 107.00 against the greenback and 139.00 against the pound.
The yen appreciated to 4-month highs of 122.91 against the euro, 107.61 against the franc and 76.55 against the aussie, off its previous lows of 123.27, 107.92 and 76.99, respectively. On the upside, 120.00, 105.00 and 75.5 are possibly seen as the next resistance levels for the yen against the euro, the franc and the aussie, respectively.
Reversing from a low of 81.72 touched at 8:00 pm ET, the yen advanced to near a 4-month high of 81.45 against the loonie. The yen is seen finding resistance around the 79.00 level.
Looking ahead, Canada trade data and new housing price index for March, U.S. PPI for April, weekly jobless claims for the week ended May 4, trade data and wholesale inventories for March are due in the New York session.