investingLive Americas FX news wrap 21 Jul: USDJPY trades to a 40 year high and runs

The article is a broad FX and market wrap, but the main driver is USDJPY surging to a fresh 40-year high as higher U.S. Treasury yields and policy divergence between the Fed and BOJ continue to favor the dollar. Technically, USDJPY broke above prior highs and remains in a strong bullish trend, with the next upside target near 164.50. The wrap also highlights an escalation in U.S.-Canada trade tensions after new 50% tariffs on Canadian imports, which helped lift the dollar against the Canadian dollar. Broader risk assets were firm: U.S. equities rallied, led by tech and AI names, while Treasury yields rose across the curve. Gold, silver, crude oil and bitcoin also moved higher, reflecting a strong cross-asset session with inflation/yield and geopolitical themes supporting commodity and risk markets.