USD/JPY faces pressure as Japan-US tariff talks show no progress

USD/JPY remains under pressure near 156.20 following reports of stalled trade negotiations between Japan and the United States. Japan's trade negotiator confirmed a 2-hour meeting with US Commerce Secretary Lutnick in Washington yielded no concrete agreements on tariff issues, with both sides still seeking common ground. The lack of progress raises concerns about potential trade tensions that could strengthen the yen as a safe-haven asset. Markets are closely monitoring any signs of escalating trade disputes, which historically have led to yen appreciation during risk-off periods. Technical indicators show USD/JPY testing support at 156.00, with a break below potentially opening the path to 155.50. Resistance sits at 156.80, the previous week's high. Traders should watch for any breakthrough in negotiations or signs of deteriorating trade relations, which could trigger significant volatility in the pair.