USD/JPY faces pressure as Ishiba-Trump talks signal trade tensions

USD/JPY is trading with a bearish bias near 156.80, down 0.2% in early Asian session as Japan's Prime Minister Ishiba held phone talks with President Trump ahead of crucial trade negotiations. Japanese Economy Minister Akazawa is scheduled to return to the US around May 30 for continued discussions, with Japan maintaining its stance on requesting elimination of US tariffs. The diplomatic developments have increased safe-haven demand for the yen, as markets price in potential trade friction between the two nations. Technical indicators show USD/JPY testing support at 156.70, with resistance at 157.20. The pair's movement reflects growing uncertainty over US-Japan trade relations, which could impact both currencies' performance. Traders are closely monitoring any signs of escalating trade tensions that could trigger further yen strength, particularly if Trump administration signals a harder stance on tariffs during upcoming negotiations.