USD/JPY volatility as Japan seeks 15% US tariff ceiling clarification

USD/JPY experienced significant intraday volatility, swinging from 147.05 to 147.70 before stabilizing around 147.40 as confusion emerged over US-Japan tariff negotiations. Japanese Prime Minister Ishiba is requesting amendments to US executive orders, asserting that both nations agreed the 15% tariff rate should serve as a ceiling rather than an additional levy on existing duties. The yen's sharp weakening earlier reflected market uncertainty about whether new tariffs would stack on current ones, potentially damaging Japan's export competitiveness. This diplomatic friction adds complexity to USD/JPY positioning, with traders monitoring both monetary policy divergence and trade relations. Technical levels show immediate resistance at 147.70 (session high) and support at 147.05 (pre-confusion level). Resolution of the tariff interpretation could provide directional clarity, with yen strength likely if Japan secures favorable amendments, while continued uncertainty may keep the pair range-bound near current levels.