USD/JPY Pressured as Sunday's Japan Election Uncertainty Weighs on Yen

USD/JPY is trading defensively near 149.50 as political uncertainty ahead of Sunday's Japanese election creates volatility in yen crosses. The pair has retreated 0.4% from weekly highs as traders reduce risk exposure before the electoral outcome. Market participants fear potential policy shifts that could impact the Bank of Japan's ultra-loose monetary stance. EUR/USD remains range-bound near 1.0850, while GBP/USD holds above 1.2950 support. AUD/USD shows resilience at 0.6520 despite broader dollar strength. Technical analysis indicates USD/JPY faces immediate resistance at 150.00, a psychologically significant level that has capped recent advances. Support is found at 149.20, coinciding with the 50-day moving average. The election results could trigger significant yen volatility, potentially breaking the current trading range. Traders should prepare for increased volatility in yen pairs through the Asian session on Monday.