• USD/JPY hit highest-level since February on Tuesday as the yen remained under pressure following Takaichi’s victory.
• Newly elected ruling party leader Sanae Takaichi said she does not want to trigger sharp declines in the Japanese yen.
• Takaichi stated that while the central bank is responsible for setting monetary policy, its decisions should align with the government’s objectives.
• Investors are awaiting details on how Takaichi will structure her government, while Japanese authorities could intervene verbally to curb the yen’s recent decline.
• The yen has tumbled this week on concerns that Takaichiwill introduce more fiscally expansive policies.
• Immediate resistance is located at 153.30(Daily high), any close above will push the pair towards 153.91 (23.6%fib).
• Support is seen at 151.80 (Oct 8th low) and break below could take the pair towards 150.80 (38.2%fib)
Recommendation: Good to buy around 153.00, with stop loss of 152.40 and target price of 153.80
