Key events today:

10.10 15:00 UTC: USD – University of Michigan Consumer Sentiment Index.

The yen remains under pressure following political changes in Japan: the election of a new ruling party leader has strengthened expectations of fiscal support, which in the eyes of the market reduces the likelihood of near-term tightening by the Bank of Japan. Rising U.S. yields amid steady demand for the dollar widen the rate differential and support the pair.

Analysts note that the exchange rate is holding near 153, with the yen weakening for several consecutive sessions. The external backdrop — nervousness in Europe and confidence in the dollar — adds momentum to the upward movement in USDJPY. Although the risk of statements from Japanese authorities about the exchange rate remains, the current news flow continues to favor the dollar.

Recent quotes show a range of 152.8–153.3 in the European session. Considering the combination of factors — yield differentials and domestic political expectations in Japan — we maintain a “trend-following” buy from 152.95 with a stop at 151.95 and a target of 153.95.

Recommendation: BUY 152.95, SL 151.95, TP 153.95