• USD/JPY edged higher on Tuesday, but gains were capped due to thin trading conditions caused by a Japanese holiday.
• Investors were still unsure if the Sino-U.S. trade war was easing, as Treasury Secretary Scott Bessent indicated it was up to China to begin negotiations.
• Trump imposed 24% tariffs on Japanese exports and targeted ASEAN nations, though most levies are paused until July for negotiations. A 10% universal tariff and a 25% duty on cars remain.
• Japan's trade negotiator Ryosei Akazawa is due in Washington for a second round of negotiations this week.
• At GMT 06:59, the US dollar was last trading down 0. 18% at 142.40, Japanese yen.
• Immediate resistance is located at 144. 13 (38.2%fib), any close above will push the pair towards 145. 00 (Psychological level).
• Support is seen at 140. 44 (23. 6%fib) and break below could take the pair towards 139. 41 (Lower BB).
Recommendation: Good to sell around 142. 50, with stop loss of 143. 50 and target price of 141. 50
