FxWirePro: USD/JPY steady as markets absorb Japan's election outcome

• USD/JPY gained modestly on Tuesday as     markets largely looked past the LDP-Komeito coalition’s election defeat.

• Japan’s ruling LDP, under Prime Minister Ishiba, secured 47 seats in the upper house elections, narrowly missing the 50-seat mark needed for control.

• The election outcome, while largely priced in by markets, comes at a sensitive moment as Japan pushes to secure a trade agreement with President Trump before August 1.

• Following the election, the BOJ may be forced to walk a fine linemanaging rising inflation pressures from expected fiscal spending while navigating political paralysis and trade war risks that argue against tightening.

•  Investors remain focused on Trump’s escalating trade moves, after a Financial Times report last week said he was pushing for sharp new tariffs on EU goods.

• Immediate resistance is located at 148.96 (38.2%fib), any close above will push the pair towards 149.60(Higher BB).

•  Support is seen at 147.32(50%fib) and break below could take the pair towards  146.32 (SMA 20).

Recommendation: Good to buy around 147.70, with stop loss of 146.80 and target price of 148.40