USD/JPY pressured as Japan seeks full US tariff exemption amid elections

USD/JPY faces downward pressure as Japan's chief trade negotiator Akazawa reaffirmed the nation's push for complete exemption from US tariffs, maintaining a firm negotiating stance. The hawkish public position comes as Prime Minister Shigeru Ishiba's minority government faces potential snap elections, with the House of Councillors election required by July 22. This political uncertainty and trade friction could strengthen the yen as investors seek safe-haven assets. The tariff dispute adds another layer of complexity to USD/JPY dynamics, potentially limiting the pair's upside as Japan demonstrates unwillingness to compromise on trade terms. Technical traders should monitor the 150.00 psychological level for support, while resistance may emerge near 152.50. The combination of political instability in Japan and ongoing trade negotiations suggests increased volatility for the pair in coming sessions.