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    Japan’s trade negotiator Akazawa plans US visit to resolve agricultural trade issues

    by VT Markets
    /
    Sep 3, 2025
    Japanese trade negotiator Akazawa is set to visit the US tomorrow. His earlier trip was canceled because of disagreements on agricultural issues. Japan was unhappy with US demands to buy more American rice. They also opposed lowering tariffs on agricultural products. The purpose of this meeting is to finalize their framework agreement, which will pave the way for a future comprehensive trade deal. With Akazawa’s visit to the US on September 4th, we can expect increased volatility in the USD/JPY currency pair. The pair has been trading around the 158.50 level for the last two weeks, and this meeting might cause a significant price movement. Derivative traders should consider short-dated options strategies, like straddles, to benefit from a potential price shift in either direction. Agriculture remains the main issue, as it is vital to the trade relationship. In 2024, Japan was the fourth-largest market for U.S. agricultural exports, purchasing nearly $15 billion worth of goods. An agreement to buy more rice or lower tariffs could significantly impact US agricultural commodity futures. We should also watch the Nikkei 225 index. Japan’s Q2 2025 GDP growth was only 0.4%, so this export-driven index is very sensitive to positive trade news. A successful framework agreement could lead to a relief rally, making Nikkei call options expiring later this month appealing. Remember that past US-Japan trade talks in 2019 caused sudden market changes, so caution is essential. While this is just a preliminary agreement, another public setback could strengthen the yen as a safe-haven asset, which would lower USD/JPY. Therefore, having some protective put options on USD/JPY could be a smart move if the talks do not succeed again.

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