The dollar held firm after Trump announced a preliminary trade deal with Japan, setting a 15% tariff on Japanese imports and securing a 550 bln USD investment pledge. The agreement, which includes opening Japan's market to more US autos and agricultural goods, is part of Trump's broader push for "reciprocal tariffs" ahead of the Aug 1 deadline.
While details remain unclear, especially around potential exemptions for Japanese autos, the deal boosted sentiment in Japanese markets. Traders are watching for further specifics, as uncertainty around implementation and broader tariff risks linger.
From a technical perspective, USDJPY is approaching the support at 145.60, which aligns with an area of Fibonacci confluence. A rebound above 145.60 could prompt a further rise toward the following resistance at 148.80. Conversely, a break below the ascending trendline and support at 145.60 could prompt a further decline toward the following support at 142.80.
By Li Xing Gan, Financial Markets Strategist Consultant to Exness
While details remain unclear, especially around potential exemptions for Japanese autos, the deal boosted sentiment in Japanese markets. Traders are watching for further specifics, as uncertainty around implementation and broader tariff risks linger.
From a technical perspective, USDJPY is approaching the support at 145.60, which aligns with an area of Fibonacci confluence. A rebound above 145.60 could prompt a further rise toward the following resistance at 148.80. Conversely, a break below the ascending trendline and support at 145.60 could prompt a further decline toward the following support at 142.80.
By Li Xing Gan, Financial Markets Strategist Consultant to Exness
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.