USD/JPY targets 148.00 as BofA maintains bullish stance on election risks

Bank of America reaffirms its long USD/JPY position as the pair advances to 147.50, marking a two-week high with gains of 0.8% (115 pips) in today's session. The bank cites mounting election uncertainties and potential tariff implementations as key drivers weakening the yen's appeal. Political risk premiums have expanded significantly, with implied volatility reaching 12.5%, the highest level since March. BofA analysts project further yen depreciation as Japanese exporters face headwinds from prospective US trade policies, potentially impacting Japan's trade surplus by 15-20%. The technical picture supports continued upside, with the pair breaking above the 50-day moving average at 147.20. Immediate resistance lies at 148.50, coinciding with the May high, while support has formed at 146.80. Traders should monitor upcoming US economic data and any Bank of Japan intervention signals, though BofA suggests intervention risks remain limited below the 150.00 threshold.