• USD/JPY gained modestly on Monday as the latest salvo of threats in the U.S. tariff wars kept investors on edge
• On Saturday, Trump announced plans to impose a 30% tariff on most imports from the European Union and Mexico starting August 1, despite both parties being engaged in prolonged trade negotiations.
• Investor focus remains squarely on the U.S. tariff narrative, particularly President Trump's weekend declaration of a 30% tariff on most imports from the EU and Mexico starting August 1.
• The announcement, coupled with elevated U.S. Treasury yields, has helped keep the dollar supported. However, the U.S.-Japan rate differential ,a key driver for USD/JPY has softened somewhat, limiting bullish momentum.
• Immediate resistance is located at 147.77(Higher BB), any close above will push the pair towards 148.55(61.8%fib).
• Support is seen at 146.24(50%fib) and break below could take the pair towards 145.39 (SMA 20).
Recommendation: Good to buy around 147.40, with stop loss of 146.70 and target price of 148.30
