• USD/JPY hit two month high on Tuesday as attention in Japan turned to who may join the administration of fiscal dove Sanae Takaichi after her party leadership victory.
• Takaichi, who is expected to become Japan’s next prime minister, has appointed former premier Taro Aso as vice president of the ruling party.
• Investors wait for details on how Takaichi will shape her government, Japanese authorities may step in with verbal intervention to temper the yen’s recent slide.
•The results of the weekend LDP leadership vote could lead to significant policy changes in Japan.
• Finance Minister Katsunobu Kato said Tuesday that currency moves should stay stable and reflect economic fundamentals, as the yen continued to weaken.
• Immediate resistance is located at 150.69(23.6%fib), any close above will push the pair towards 150.97 (Higher BB).
• Support is seen at 149.29 (38.2%fib) and break below could take the pair towards 149.00 (Psychological level)
Recommendation: Good to buy around 150.40, with stop loss of 149.60 and target price of 151.30
