The USD is heavy in Asia trade on the new tariff debacle. Japan is closed today for a holiday. China is NOT back from its holiday today. I thought they were but I’ll have to wait until Tuesday, February 24, 2026.HK shares are up, Hang Seng +1.4% or so.
This article was written by Eamonn Sheridan at investinglive.com.
💡 DMK Insight
The USD’s weakness in Asia signals potential volatility ahead, especially with tariffs looming. With Japan closed and China still on holiday, the market’s reaction could be muted, but the Hang Seng’s 1.4% rise suggests bullish sentiment in Hong Kong. Traders should keep an eye on how the USD performs against the JPY and CNY once these markets reopen. If the tariff situation escalates, we could see a flight to safe-haven assets like gold or the JPY. Watch for key levels in USD/JPY; a break below recent support could trigger further selling pressure. Additionally, monitor the Hang Seng for any signs of reversal as it approaches resistance levels, which could impact broader Asian markets once China returns to trading. The real story is how these tariffs could reshape trade flows and investor sentiment, so be prepared for sudden moves in both forex and equities as the situation develops.
📮 Takeaway
Watch the USD/JPY for a potential breakdown below support, which could signal increased volatility in the forex market as tariffs escalate.





