USD/JPY Analysis by zForex Research Team - 07.21.2025Yen Recovers After Japan’s Upper House Election
The Japanese yen rose to around 148.5 per dollar on Monday, recovering some of last week’s losses after the ruling coalition lost its upper house majority. Markets had mostly priced in the result, limiting the reaction. Prime Minister Ishiba is expected to remain in office, which could ease concerns over political instability.
The opposition is likely to push for more spending and tax cuts, which could pressure the yen and lift bond yields. The election outcome comes as Tokyo continues trade talks with Washington. US Commerce Secretary Lutnick confirmed the August 1 tariff deadline but said negotiations will continue.
For the yen, resistance stands at 149.30, followed by 151.50, with the next key level at 155.00. Support is located at 147.50, with further levels at 146.15 and 145.30.
