A snippet from MUFG, analysts at the bank argue that if PM Ishiba is forced out a fresh leader could spurge on spending.

There is renewed speculation that Prime Minister Shigeru Ishiba could step down following his party’s loss of a majority in July’s upper house elections.

MUFG:

• political uncertainty could accelerate yen selling
• markets wary of the risk that a new leader might back larger fiscal spending
• the turmoil could also undermine expectations for the Bank of Japan to raise interest rates in October

JPY recovered some ground on Wednesday, US time. 147.90 looks key for the session today.