USD/JPY Consolidates at 149.50 as Japan Election Uncertainty Weighs

USD/JPY remains range-bound near 149.50, showing minimal movement of just 0.1% as markets digest the implications of Japan's upcoming election and its potential impact on Bank of Japan monetary policy. The pair has entered a consolidation phase between 149.20 support and 149.80 resistance, with implied volatility dropping to three-month lows. Political uncertainty surrounding the Liberal Democratic Party's leadership race has created hesitation among yen traders, as different candidates hold varying views on BOJ's ultra-loose monetary stance. The US Dollar Index trades flat at 102.85, reflecting broader forex market lethargy ahead of key economic releases. Technical analysis reveals a symmetrical triangle pattern forming on the 4-hour chart, suggesting an imminent breakout. A decisive move above 150.00 could target 150.80, while failure at current levels might see retracement to 148.50. Traders await clarity on Japan's political direction and its implications for potential BOJ policy normalization.