• USD/JPY climbed on Tuesday as trade uncertainties kept the yen under pressure, reducing hopes for a BoJ rate hike expectation.
• On Monday, Trump began notifying trade partners from major suppliers like Japan and South Korea to smaller nations that sharply higher U.S. tariffs would take effect on August 1.
• Japan missed the July 9 deadline to reach a trade deal with the U.S., as it prioritized securing the removal of automobile tariffs during negotiations, ultimately failing to prevent the expiration of Trump’s temporary tariff pause.
• Japan’s top trade negotiator, Ryosei Akazawa, stated on Tuesday that any trade deal with the U.S. must include tariff concessions for Japan’s crucial automobile sector.
• Akazawa emphasized that safeguarding the automobile sector central to Japan’s export-driven economy and now facing 25% U.S. tariffs—remains one of his top priorities in trade negotiations.
• Immediate resistance is located at 147.22 (Higher BB), any close above will push the pair towards 147.81 (Higher BB).
• Support is seen at 145.57(50%fib) and break below could take the pair towards 144.26 (July 7th low).
Recommendation: Good to buy around 146.60, with stop loss of 145.60 and target price of 147.50
