The pair moved up to a high of 151.60 earlier as Sanae Takaichi won her bid to become Japan’s next prime minister. The nudge up stalled upon testing the 200-hour moving average (blue line) before falling back to 151.06. But in the past half hour, we’re starting to see buyers step back in as price moves back up to 151.60 again:
USD/JPY hourly chart
It’s a second attempt to firmly break above the 200-hour moving average, which rests around 151.52 currently. Hold a break above and the near-term bias switches to being more bullish for the pair. And as mentioned earlier, that will then free up room for buyers to try and look towards a potential test of the monthly high at 153.27 down the road.
Takaichi may be a fiscal dove and markets are reacting to that. However, there will be a lot for her to try and deal with in the coming weeks/months: What are the main challenges for Japan’s first female prime minister Takaichi?
