USD/JPY gains ground to near 148.50 amid political uncertainty in Japan

• USD/JPY edges higher to around 148.50 in Wednesday's early Asian session.
• Trump said his administration would ask the Supreme Court for an expedited ruling on tariffs.
• Former PM Aso Taro will publicly call for a new LDP presidential election.

The USD/JPY pair trades on a stronger note around 148.50 during the early Asian session on Wednesday. Heightened political uncertainty in Japan weighs on the Japanese Yen (JPY) against the US Dollar (USD). The US JOLTS Job Openings and the Fed Beige Book will be published later on Wednesday. 

On Friday, the US Court of Appeals for the Federal Circuit upheld a ruling that the sweeping tariffs the US President Donald Trump unilaterally imposed on most other countries were illegal. The decision impacts Trump's so-called "reciprocal" tariffs on most nations across the globe, including additional levies placed on China, Mexico, and Canada.

Treasury Secretary Scott Bessent said on Tuesday he expects the Supreme Court will approve Trump's use of a 1977 emergency powers law to slap the tariffs on trading partners, and the administration has a backup plan if it does not. Meanwhile, Trump stated that he would ask the Supreme Court for an "expedited ruling." Worries over trade uncertainty could drag the Greenback lower in the near term. 

On the other hand, heightened political uncertainty in Japan could undermine the JPY and create a tailwind for the pair. Japanese media reported on Tuesday that former Prime Minister Aso Taro will publicly call for a new Liberal Democratic Party (LDP) presidential election on Wednesday. This development adds new impetus to the attempt to force current Prime Minister Shigeru Ishiba's hand.