FxWirePro: USD/JPY advances on weak yen driven by trade and election anxiety

• USD/JPY advanced on Thursday as Japan’s election uncertainty and U.S. trade tensions weighed on yen.

• Investors remain focused on tariffs ahead of an August 1 deadline when many trading partners face higher trade levies

• Japan failed to clinch a deal with the U.S. before the July 9 expiration of the temporary pause on the country-specific tariffs.

• Amid heightened trade tensions, Japan’s top trade negotiator spoke with U.S. Commerce Secretary Howard Lutnick on tariffs, as export data showed a second consecutive monthly decline amid growing trade pressure.

• Meanwhile, Recent opinion polls suggest that Prime Minister Shigeru Ishiba’s ruling coalition is at risk of losing its majority in the upper house of parliament, raising concerns over potential political instability.

• Immediate resistance is located at 149.38(38.2%fib), any close above will push the pair towards 150.00(Psychological level).

• Support is seen at 147.61(50%fib) and break below could take the pair towards  145.72 (61.8%fib).

Recommendation: Good to buy around 148.50, with stop loss of 147.70 and target price of 149.50