USD/JPY flows: Opened lower on Japanese election

Japan's LDP loses majority in the Upper house after the election over the weekend. The LDP's coalition with Komeito  are two seats short of a majority and they will likely be given a hard time to seek co-operation with other smaller parties. The Democratic Party for the People made most gains from 9 to 22 seats and far right Sanseito will hold 15 seats. No doubt PM Ishiba will be having a difficult time against party pressure to resign and tight timeline to make a trade deal with the U.S..

USD/JPY opened almost a figure lower than Friday's close at 147.86 but have quickly recouped most losses to trade at 148.52, 0.18% lower than Friday.