• USD/JPY edged higher on Thursday after data showed Japan trade deficit widened in July.
• Japan’s trade deficit widened in July as imports surged, while the government said it expects to secure nearly all of its usual monthly crude oil supplies without routing tankers through the Strait of Hormuz.
• Japan’s trade deficit widened sharply to JPY 634.5 billion in July 2026 from JPY 156.3 billion a year earlier, but remained below the JPY 680 billion market forecast.
• It marked the third consecutive month of deficit and the largest since January, as imports rose faster than exports.
•Imports jumped 27.8% year-on-year to a record JPY 12,146.3 billion in July, accelerating from a 25.4% increase in June.
• Immediate resistance is located at 159.47(50%fib), any close above will push the pair towards 159.69 (SMA 20).
• Support is seen at 157.66 (38.2%fib) and break below could take the pair towards 155.66(23.6%fib).
Recommendation: Good to buy around 158.10, with stop loss of 157.50 and target price of 159.00
