USD/JPY faces pressure as Japan confirms smooth US trade agreement

USD/JPY is experiencing downward pressure following Japan's Foreign Minister Hayashi's confirmation that the US-Japan tariff agreement is being implemented smoothly by both parties. The statement reinforces bilateral trade stability and reduces uncertainty around potential trade frictions that could impact currency flows. Japan's satisfaction with the agreement suggests continued cooperation in trade policy, which traditionally supports yen strength through stable export conditions. The development comes amid heightened global trade tensions, particularly in strategic industries, making this bilateral stability more significant for market participants. While specific price levels weren't mentioned, the positive trade relationship typically reduces safe-haven demand for the dollar against the yen. Traders should monitor upcoming Japanese trade balance data and any US response to gauge further directional bias. The confirmed trade harmony may limit USD/JPY upside potential in the near term, especially if risk-on sentiment improves globally.