• USD/JPY slipped lower on Monday as yen rose across the board after Japan's ruling coalition lost its majority in the upper house.
• Prime Minister Shigeru Ishiba’s Liberal Democratic Party secured 47 seats—three short of the 50 needed for a majority in Japan’s 248-seat upper house, where half the seats were contested.
• The ruling coalition’s setback adds a layer of uncertainty to Japan’s policy outlook, particularly with domestic markets closed on Monday for a national holiday.
• The market’s response follows a volatile week in Japanese assets, during which 30-year Japanese government bond (JGB) yields touched an all-time high, and the yen hit multi-month lows against the dollar.
• Attention now shifts to global trade developments, with Japanese tariff negotiator Akazawa scheduled to travel to Washington this week. His visit comes just ahead of the crucial August 1 deadline.
• Immediate resistance is located at 147.75 (38.2%fib), any close above will push the pair towards 148.78(Daily high).
• Support is seen at 147.56(SMA 9) and break below could take the pair towards 147.07 (50%fib).
Recommendation: Good to sell around 147.30, with stop loss of 148.00 and target price of 146.50
