TOKYO (Reuters) -When Japanese Premier Shigeru Ishiba first met Donald Trump in February, his plan to placate the protectionist president's long-held frustration with Tokyo on trade was a promise to invest $1 trillion in the United States.

The Japanese Yen recovers further from a two-week low touched against USD on Wednesday. Tariff jitters benefit the safe-haven JPY, while Fed rate cut bets undermine the Greenback. Reduced BoJ rate hike bets could act as a headwind for the JPY and warrant caution for bulls.

The head of one of Japan’s most powerful business lobbies has accused the government of a “mistake” in its trade negotiating strategy with the US, after President Donald Trump announced 25 per cent tariffs on Washington’s closest Asian ally.

BRUSSELS (Reuters) -European Commission President Ursula von der Leyen and U.S. President Donald Trump had a "good exchange" on Sunday, a Commission spokesperson said on Monday, adding that the EU's aim remained to reach a trade deal with Washington by July 9.

Japan views tariffs on automobiles, one of the most important industries in the country, as a sticking point. Unlike most of the world, Japan remains intransigent on compromise.

Japan must diversify its trade relationships beyond the U.S. to mitigate risks, according to Hirofumi Yoshimura of the Japan Innovation Party. He suggests expanding ties with pro-free trade countries to strengthen economic security.

U.S. President Donald Trump has complained that Japan was not buying American rice, putting pressure on Tokyo as it struggles to seal a trade deal before so-called "reciprocal" tariffs are set to kick in on July 9.