07:13 AM EDT, 07/15/2025 (MT Newswires) -- The recent pick-up in United States yields and the US dollar has helped to lift USD/JPY back up closer to the 148.00 level, said Mitsubishi UFG.

The move higher in USD/JPY also reflects yen weakness ahead of this weekend's Upper House election in Japan's parliament, wrote the bank in a note to clients.

The risk of the government losing its majority was highlighted by a poll in the Asahi Shimbun published on Tuesday, pointed out MUFG. The mid-point forecast showed the ruling LDP and coalition partner Komeito on course to win just 43 seats, which, when combined with the 75 uncontested seats, would mean that they are on track to fall seven seats short of the 125 needed for a majority.

The upper bound forecast projected the ruling coalition winning 51 seats, implying they still have a chance of maintaining their majority, but it isn't looking good for the government, stated the bank. The Asahi Shimbun was correct in calling the ruling coalition losing its majority in the Lower House election.

Losing its majority in the Upper House as well would fuel expectations for looser fiscal and monetary policies and encourage yen selling, it added.