Why election risk means yen volatility could rise this week

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The Japanese yen remains vulnerable ahead of Japan’s Upper House election on July 20.

Polls suggest the ruling LDP-Komeito coalition may lose its Upper House majority. Such an outcome would further weaken Prime Minister Shigeru Ishiba’s position, with his government already operating as a minority in the Lower House.

Adding to the pressure, the U.S. is set to impose 25% tariffs on Japanese goods from August 1—part of a broader protectionist push.

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