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TD Securities: The yen is expected to remain under pressure in the short term.
Jin10 data reported on July 18 that TD Securities strategists indicated the yen is likely to remain under pressure in the short term. The strategists stated that multiple surveys show the ruling coalition in Japan may not win more than 50 seats in the Senate elections on Sunday to maintain its majority advantage. The forex options market shows an increasing tendency to short the yen as the market factors in election and fiscal deterioration risks. "If Prime Minister Shigeru Ishiba decides to resign due to election defeat, USD/JPY could easily break through 149.70, as this would usher in a period of initial political turbulence."