USD/JPY Holds Above 148.00 Amid Japan Election Impact.
The Japanese Yen stays firm against a weaker U.S. Dollar but shows limited bullish momentum
FUNDAMENTAL OVERVIEW:
The Japanese Yen (JPY) struggles to build on its modest rebound against a softer US Dollar (USD), allowing the USD/JPY pair to reclaim ground above the 148.00 level during early European trading on Monday. Japan’s upper house election over the weekend dealt a significant blow to the ruling coalition, heightening concerns about rising debt amid opposition calls for increased spending and tax cuts. The election outcome may also complicate trade talks with the U.S. as the August 1 tariff deadline approaches.
Additionally, subdued economic growth, falling real wages, and cooling inflation may give the Bank of Japan (BoJ) room to delay rate hikes, further weighing on the Yen. Despite this, safe-haven demand for the JPY persists due to investor concerns over potential economic fallout from President Donald Trump’s unpredictable trade policies.
Meanwhile, the USD remains under pressure, trading below last week’s monthly highs as markets assess mixed signals on the Federal Reserve’s interest rate path. This caps further gains in the USD/JPY pair and calls for caution in the absence of major economic data on Monday. Overall, the broader outlook still favours JPY bears, suggesting that any dips in the pair could present renewed buying opportunities.
USD/JPY TECHNICAL ANALYSIS DAILY CHART:
Technical Overview:
USD/JPY is trading within an up channel.
USD/JPY is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in Buying Zone, while the Stochastic oscillator suggests Positive trend.
Immediate Resistance level: 148.80
Immediate support level: 146.10
HOW TO TRADE NETFLIX
After a downward trend on the higher time frame, USD/JPY found support and reversed to the upside, maintaining its bullish momentum. The pair has now broken above a key resistance zone and is trading firmly above it. If it holds above this level, a move toward the next major resistance could be likely.
