Yen losses ease up a little in European morning trade | Forexlive

The pair is still up 0.4% on the day at around 152.90 but has fallen back below the opening gap of 153.23 upon the return from the weekend. The opening gap higher owes to the Japan election result. More on that from earlier: Japanese yen in the spotlight after weekend election

The losses in the yen are being arrested for now but it doesn’t materially alter the technical picture for USD/JPY.

The near-term chart above continues to see buyers remain in near-term control, holding well above its 100-hour moving average (red line). The key near-term level is seen at 152.13 currently, so there is some way to go in drawing another test of that again.

The opening gap higher in yen pairs owes much to traders pricing in “uncertainty” with regards to the Japan lower house election outcome. That also sees prime minister Ishiba’s position get called into question.

However, the political landscape is not likely to change much and for the time being, Ishiba might just scrape through in the upcoming vote which is reported to be on 11 November. I mean, there are no major contenders to oust him for now – not least when the party itself is reflecting a more fragile look.

The LDP and Komeito are still likely to form a majority coalition with the help of the smaller parties. So, bigger picture politics won’t see that drastic a change; even if voters are growing increasingly more frustrated.

As the dust settles, that is perhaps what is leading to traders fading the earlier spike in USD/JPY at the open.