USD/JPY Climbs to 147.55 Amid Japan Political Uncertainty and Tariff Talks

USD/JPY Climbs to 147.55 Amid Japan Political Uncertainty and Tariff Talks

The USD/JPY currency pair climbed to around 147.55 during early Tuesday trading in the Asian session, as the Japanese Yen (JPY) lost ground against the US Dollar (USD) due to domestic political instability and uncertainty over upcoming US-Japan trade negotiations.

Political Uncertainty Pressures the Yen

Japanese Prime Minister Shigeru Ishiba has vowed to remain in office even though exit polls indicate his Liberal Democratic Party (LDP) is on track to lose its upper house majority in Sunday’s election. Though widely expected by markets, the outcome adds pressure to the JPY, which is already seen as vulnerable in the face of shifting fiscal policies.

“The market was prepared for this result, but now the real focus is on the US-Japan trade deal,” said David Chao of Invesco.

US-Japan Trade Deal in Focus

Attention is now shifting toward the upcoming US-Japan trade talks, with Japan’s top negotiator Ryosei Akazawa expressing optimism that a preliminary deal could be reached by August 1. While the details remain unclear, traders are closely watching for any developments that might impact tariff structures and cross-border flows.

Key Points:

• USD/JPY trades near 147.55, gaining in early Asian hours.
• Yen weakens amid political instability in Japan.
• PM Shigeru Ishiba to stay on despite expected election losses.
• Markets await US-Japan trade deal news before August 1.
• Tariff uncertainty continues to drive FX volatility.

Suggested Internal Links for Tredu.com:

• How Political Risk Affects Currency Markets
• What to Expect From the US-Japan Trade Talks
• Understanding the USD/JPY Pair: Key Drivers
• How Tariffs Impact Forex Markets and Trade Flow