• The Japanese Yen weakens against the USD and is weighed down by a combination of factors.
• Rebounding US bond yields and a positive risk tone drive flows away from the safe-haven JPY.
• A strong pickup in the USD demand contributes to USD/JPY’s move back above mid-150.00s.

The Japanese Yen (JPY) drifts lower against its American counterpart at the start of a critical week and reverses a part of Friday's strong move up to the highest level since October 21. The US Treasury bond yields regain positive traction in reaction to US President-elect Donald Trump's threatened 100% tariffs on BRICS nations. This, in turn, helps revive the US Dollar (USD) demand and turns out to be a key factor driving flows away from the lower-yielding JPY. 

Apart from this, the underlying bullish tone around the equity markets further undermines demand for the safe-haven JPY. That said, persistent geopolitical tensions and rising bets for another interest rate cut by the Bank of Japan (BoJ) in December should limit deeper JPY losses. Traders might also refrain from placing aggressive directional bets and opt to wait for this week's important US macro releases, starting with the ISM Manufacturing PMI later this Monday.