News
7x24
Quotes
Economic Calendar
Video
Data
- Names
- Latest
- Prev.
USD/JPY Slides Toward 143 as Fed Bets Mount, Tokyo Resists U.S. Pressure
Traders' Opinions
Summary:
The Japanese Yen rallied to a two-week high against the US Dollar on Tuesday, with USD/JPY slipping near 143.00 as broad-based dollar weakness intensified amid dovish Fed bets and renewed US–Japan trade friction.
Sell
CLOSEDUSDJPY
End Time
143.200
Entry Price
140.000
TP
145.000
SL
144.848 -0.060 -0.04%
1800
Points
Loss
140.000
TP
145.003
CLOSING
143.200
Entry Price
145.000
SL
The Japanese Yen extended its gains against the US Dollar on Tuesday, climbing to its strongest level in more than two weeks as traders piled into safe-haven currencies amid growing uncertainty surrounding US monetary policy and renewed signs of strain in US–Japan trade negotiations. The USD/JPY pair fell by nearly 0.70% during the American trading session, sliding toward the key psychological level of 143.00 and highlighting the persistent downward pressure on the Greenback.
The Yen’s appreciation comes despite intensifying trade tensions between Tokyo and Washington, with the Japanese government firmly rejecting renewed American calls to liberalize its agricultural markets. The currency’s resilience, even amid diplomatic friction, points to the broader market narrative: investors increasingly anticipate a more dovish Federal Reserve policy path as US fiscal concerns mount and macroeconomic data begins to soften.
Trade negotiations between the world’s largest and third-largest economies have hit an impasse. US officials, emboldened by political pressure to protect American farmers, have demanded greater access to Japan’s tightly protected agricultural sector—particularly its rice market. Former President Donald Trump reignited the controversy with a characteristically sharp post on Truth Social:
“They won’t take our RICE, and yet they have a massive rice shortage. In other words, we’ll just be sending them a letter, and we love having them as a Trading Partner for many years to come.”
Japan, however, is standing its ground. Economy Minister Ryosei Akazawa reaffirmed the government’s red lines in a press briefing, declaring that "agriculture is the foundation of the nation," and Tokyo would not engage in negotiations that would compromise domestic food security. “Our stance remains unchanged,” Akazawa said. “We will not sacrifice the agricultural sector, but we remain open to constructive dialogue that reflects mutual interests.”
This deadlock adds another layer of geopolitical risk to the USD/JPY equation, at a time when the Greenback is already struggling to maintain altitude against its major counterparts.
On the economic front, Japan is showing glimmers of strength. The au Jibun Bank Manufacturing Purchasing Managers’ Index (PMI) returned to expansion territory in June, printing at 50.1—marking the first above-50 reading in 13 months. The recovery was driven by modest improvements in factory output and sustained job creation, although new orders and exports remained soft, reflecting global headwinds and uncertainty surrounding trade policy.
Meanwhile, the Bank of Japan’s closely watched Tankan survey revealed a slight improvement in business sentiment among large manufacturers. The index rose to 13 in the second quarter, exceeding expectations of 10 and up from 12 in the prior quarter. While the figures hardly point to a robust boom, they underscore a slow but consistent path to recovery for the world’s third-largest economy.
Still, policymakers remain wary of moving too quickly. Kazuyuki Masu, the newest member of the BoJ policy board, struck a cautious tone in his first public remarks, warning that “underlying inflation remains subdued” and that the central bank “must not rush” to raise interest rates prematurely. His comments signal continuity in the BoJ’s ultra-gradual normalization strategy, especially amid renewed trade uncertainties and lingering global disinflationary pressures.
While the Yen’s relative strength can be partially attributed to improving domestic fundamentals, the overriding driver remains US Dollar weakness. Growing expectations that the Federal Reserve will begin easing rates as early as September have weighed heavily on the Dollar Index, with softening labor market data and rising political dysfunction in Washington only adding to the bearish case.
Investors are now squarely focused on a crucial slate of upcoming US employment reports. Wednesday’s ADP Employment Change and Thursday’s Nonfarm Payrolls (NFP) release are expected to provide clearer insight into the strength—or lack thereof—of the US labor market. Any significant downside surprises could further reinforce expectations for a September rate cut and exacerbate the downward momentum in USD/JPY.
Technical Analysis 
Technically, USD/JPY continues to exhibit bearish tendencies. The pair has broken below its near-term support at 143.65, weighed down by persistent selling pressure below the 50-day Exponential Moving Average (EMA). Momentum indicators paint a bearish picture as well: the Relative Strength Index (RSI) has exited overbought territory and is generating fresh negative signals, opening the door to further downside.
Should the bearish bias persist, USD/JPY is likely to test the 142.50–142.00 zone—a key support region last seen in early June. A decisive break below this area could trigger a steeper decline toward the 140.50–140.00 range, particularly if upcoming US data disappoints and the Fed’s dovish pivot gathers pace.
On the upside, any recovery attempts would need to overcome resistance at 144.50, where the 50-day EMA and recent swing highs converge. A break above that level would neutralize near-term bearish risks but would require a strong fundamental catalyst—something currently absent from the US side.
TRADE RECOMMENDATION
SELL USDJPY
ENTRY PRICE: 143.20
STOP LOSS: 145.00
TAKE PROFIT: 140.00
Risk Warnings and Investment Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.
Quick Access to 7x24
Quick Access to More Editor-selected Real-time News
Exclusive video for free
FastBull project team is dedicated to create exclusive videos
Real-time Quotes
View more faster market quotes
More comprehensive macro data and economic indicators
Members have access to entire historical data, guests can only view the last 4 years
Member-only Database
Comprehensive forex, commodity, and equity market data
English
English
العربية
繁體中文
简体中文
Bahasa Melayu
Bahasa Indonesia
ภาษาไทย
Tiếng Việt
Copyright © 2025 FastBull Ltd
Home News Columns 7x24 Economic Calendar Quotes Video Data WarehouseAnalysis AI Signal Pro User Agreement Privacy Policy About Us
Risk Disclosure
The risk of loss in trading financial assets such as stocks, FX, commodities, futures, bonds, ETFs or crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No consideration to invest should be made without thoroughly conduct your own due diligence, or consult with your financial advisors. Our web content might not suit you, since we have not known your financial condition and investment needs. It is possible that our financial information might have latency or contains inaccuracy, so you should be fully responsible for any of your transactions and investment decisions. The company will not be responsible for your capital lost.
Without getting the permission from the website, you are not allow to copy the website graphics, texts, or trade marks. Intellectual property rights in the content or data incorporated into this website belongs to its providers and exchange merchants.