USDJPY – Yen Weakens as Japan Forms New Coalition

[cryptobro]

Hello everyone, what are your thoughts on USDJPY

At the start of the new week, USDJPY is showing interesting movements following news that Japan’s ruling Liberal Democratic Party (LDP) and the Japan Innovation Party have agreed to form a coalition government. This development paves the way for Sanae Takaichi to become Japan’s first female Prime Minister, sparking market expectations of increased fiscal spending and a more accommodative monetary policy.

From a market perspective, these expectations tend to weaken the yen, as investors anticipate low interest rates to continue and ample liquidity support from the Bank of Japan.

As a result, USDJPY is likely to maintain its upward momentum, with potential for further gains if the U.S. dollar continues to be supported by higher Treasury yields and solid U.S. economic data.

What about you — do you think USDJPY will keep rising or start to fall? Share your thoughts in the comments below!
Good luck!

[alex10]

Political stability often brings temporary Yen weakness as markets anticipate fiscal expansion.

[Nahid10]

USDJPY momentum favors the dollar, but overbought RSI suggests caution for new long positions.