The yen falls to a three-month low amid political uncertainty in
Japan's ruling party has faced a devastating defeat in the general election, leading to a surge of political uncertainty that has driven the yen to its lowest in three months. If PM Ishiba resigns and is succeeded by the dovish Sanae Takaichi as president of the Liberal Democratic Party, concerns about the BoJ's plan to raise interest rates will intensify. This scenario will signal that Japan may be losing its political and policy-stable status, resulting in a long-term stalemate in the Japanese stock market.
USDJPY sustains a solid uptrend within the ascending channel, finding support around 153.00. The gap between both EMAs widens, sending out a bullish signal. If USDJPY breaches the resistance at 154.00 and then crosses the ascending channel’s upper bound, the price may continue its uptrend toward 157.80. Conversely, if USDJPY breaks EMA21 and the channel's lower bound, the price could fall further to the support at 150.80, where EMA78 coincides.
