• USD/JPY advanced on Friday as stronger greenback and diminishing prospects for a U.S.-Japan trade agreement weighed on yen.
• The lack of diplomatic progress, combined with Japan’s upcoming Upper House elections on July 20, has clouded the political landscape, prompting investors to shy away from the yen.
• The yen has been under consistent downward pressure, as the likelihood of a swift resolution to U.S.-Japan trade discussions diminishes.
• Until clearer direction emerges from both Washington and Tokyo, JPY may remain on the defensive.
• Immediate resistance is located at 147.52(50%fib), any close above will push the pair towards 148.05(June 23rd high).
• Support is seen at 145.35(SMA 9) and break below could take the pair towards 145.00 (Psychological level).
Recommendation: Good to buy around 146.70, with stop loss of 146.00 and target price of 148.00
