The Japanese yen is negative ground on Thursday. In the North American session, USD/JPY is trading at 144.06, up 0.47%.
US-Japan trade talks stumble over …. rice
The US and Japan are racing to reach a trade deal before a deadline of July 9. There are some serious roadblocks to a deal, including the current US tariff of 25% on Japanese cars and opening Japan’s agricultural sector, particularly rice. President Trump has insisted that Japan import American-grown rice, but the Japanese government says that is unacceptable.
Japan’s Economy Minister Ryosei Akawaza said earlier this week that Japan would not “sacrifice the agricultural sector”, while Farm Minister Shinjiro Koizumi said that foreign rice imports would threaten Japan’s food security.
US nonfarm payrolls expected to drop to 110 thousand
It’s a shortened week in the US due to the Fourth of July holiday on Friday. The US will release the June employment report on Thursday, with all eyes on nonfarm payrolls.
Nonfarm payrolls eased slightly in May to 137 thousand from 147 thousand and the downward trend is expected to continue, with a consensus of 110 thousand for June. This would mark the weakest pace of job growth since 2020, with the exception of a meltdown in job growth in Oct. 2024.
The Federal Reserve will also be monitoring the nonfarm payroll report. The US labor market has been weakening and the Fed is concerned that the jobs market could show a sharp deterioration. Currently, the most likely date for the next Fed rare cut is September, but a soft NFP reading south of 90 thousand would boost the case for a cut at the July 30 meeting.
The Fed has maintained a wait-and-see stance since Nov. 2024 but that is expected to change in the fourth quarter, where we could see up three rate cuts.
USD/JPY Technical
- There is support at 142.64 and 141.86
- 143.45 and 144.23 are the next resistance lines
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About the Author
Kenneth Fisher
Market Analyst
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities.
His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet.
Based in Israel, Kenny has been a MarketPulse contributor since 2012.
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities.
His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet.
Based in Israel, Kenny has been a MarketPulse contributor since 2012.
