The US dollar continues to crack under pressure from top currencies, with the DXY index near three-year lows. The USDJPY forex pair traded at 143.71 in the New York trading session on Tuesday, having recovered from lows of 142.67. Traders are offloading the dollar as it loses its safe haven attractiveness as the July 9 deadline for US trade partners to agree trade deals draws near.
US President Donald Trump’s 90-day pause of reciprocal trade tariffs will lapse in the next eight days and that could potentially usher another tumultuous period for the US economy and the greenback. US stocks opened lower on Tuesday as traders started repositioning themselves for potential tariff-fueled disruptions. Also, the Fed’s higher-for-longer interest rate policy is likely to have impacted the labour data including NFP figures expected on Friday.
After five rounds of negotiations, Japan and US delegations have yet to announce a concrete trade deal between the two nations. That has raised concerns that exporters could start feeling the heat in the coming days. Japan’s Tankan Manufacturing Index came in stronger than expected in the second quarter, rising by 13 points to beat analysts’ estimates that had forecasted stagnation. That adds propulsion to the yen and brings pressure on the USDJPY pair which is also facing headwinds caused by US budget stalemate. Meanwhile, US Senate Republicans are struggling to get support for President Trump’s Big Beautiful Bill, which is estimated to add $3.3 trillion to the national debt.
USDJPY Prediction
USDJPY pivot mark is at 143.77 and the momentum signals control by the sellers. The pair will likely find primary support at 143.07, but a stronger downward momentum could break below that level and test 142.67.
Conversely, breaking above 143.77 will invite the buyers to take control. That will likely see the first resistance established at 144.22. If action goes above that level, the downside narrative will be invalid, and the resulting momentum could send the pair higher to test 144.63.
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