• USD/JPY strengthened on Friday as yen weakened, driven by mounting concerns over U.S. trade policy and the possibility that Japan may be excluded from any forthcoming agreements.
• A pause on the 24% reciprocal tariff on Japanese imports expires July 9, though President Trump has hinted the rate could go even higher.
• This week, Trump criticized Japan for resisting U.S. rice imports and accused Tokyo of unfair practices in the auto trade.
• He cast doubt Tuesday on the likelihood of a trade deal with Japan and suggested tariffs on Japanese imports could rise to 30% or even 35%, surpassing the 24% rate previously proposed on April 2.
• It remained uncertain whether Trump would follow through on his threat to bypass further trade talks with Japan and instead issue a formal letter imposing a specific tariff rate.
• Immediate resistance is located at 145.63 (50%fib), any close above will push the pair towards 146.76 (Higher BB).
• Support is seen at 144.32(Daily low) and break below could take the pair towards 143.14(38.2%fib).
Recommendation: Good to sell below 145.60, with stop loss of 147.60 and target price of 144.50
