U.S. Administration Reportedly Sends Letters to Major Countries; Uncertainty Looms Over Tariff Policy【JULY7, 2025】
Fundamental Analysis
July 9 tariff increase extension deadline approaches
Treasury Secretary Bessent hints at possible extension
Market exhibits strong uncertainty and lacks clear direction
USDJPY Technical Analysis
Analyzing the daily chart for USDJPY, the pair’s trading range has become extremely narrow, indicating virtually no directionality. It is trading within the Ichimoku Cloud, and volume remains low. While a summertime lull could be a factor, heightened uncertainty surrounding the Trump administration’s tariff policy appears to be a significant cause.
Currently trading around 144.50 yen, USDJPY remains range-bound near the 52-day moving average.
The U.S. administration announced plans to inform countries of their respective tariff rates by letter by July 9, and until results for major countries become clear, the market is unlikely to show a distinct directional trend. The USDJPY pair is expected to remain in a range between 142 yen and 145 yen for the time being.
USDJPY/Daily
Day Trading Strategy (1-Hour Chart)
Analyzing the hourly chart, it can be seen that the adjustment phase after the sharp rise in USDJPY following U.S. employment data appears complete, with slight rebound near the 52-period moving average. Dip-buying is robust, suggesting traders await clarity on Trump’s tariff direction.
Determining whether tariffs will be implemented seriously or used merely as negotiating leverage remains challenging. As tariff rates affecting Japan and other major economies could be announced at any moment, maintaining long-term positions is inadvisable.
Short-term buy entries with a scalping approach appear suitable for the current situation.
USDJPY／1H
Support and Resistance Levels
Support and resistance levels to watch going forward:
- 144.25 – Base Line
Market Sentiment
USDJPY
- 34% short ／ 66% long
Key Economic Events Today
| Event／Indicator | Time（JPT） |
| --- | --- |Eurozone Retail Sales18：00
Risk Disclaimer
This analysis is for educational purposes only and does not constitute investment advice. Trading forex and CFDs involves significant risk and may not be suitable for all investors. Past performance is not indicative of future results.
This analysis is for educational purposes only and does not constitute investment advice. Trading forex and CFDs involves significant risk and may not be suitable for all investors. Past performance is not indicative of future results.
