FxWirePro:USD/JPY slips lower as yen firms after LDP landslide victory

 • The USD/JPY slipped lower on Monday as yen firmed after Takaichi's ruling party delivered supermajority in Sunday vote.

 • The result gives Takaichi a strong mandate to pursue expansionary fiscal policies, which could weaken the yen and Japanese government bonds while supporting equities.

• Takaichi is projected to secure up to 328 of the 465 lower house seats for her Liberal Democratic Party, along with its coalition partner.

• Investors have been wary due to the lack of clarity on how Japan, which carries the highest debt burden among developed nations, would finance the proposal.

• Japanese stocks jumped, bonds declined, and the weakened yen rebounded on Monday as the Liberal Democratic Party’s victory was viewed as paving the way for decisive fiscal stimulus measures.

•Japan is alarmed by the sharp movements in foreign exchange markets and is watching developments closely with a strong sense of urgency, Chief Cabinet Secretary Minoru Kihara said at a press conference on Monday.

• Immediate resistance is located at 157.65(Daily high), any close above will push the pair towards 158.91 (23.6%fib).

•  Support is seen at 156.22(38.2%fib) and break below could take the pair towards 155.46 (Feb 3rd low)

Recommendation: Good to sell around 156.60, with stop loss of 157.40 and target price of 155.70