JPY – Political turmoil in Japan caps the yen's gains

The yen weakened early last week due to domestic politics. On Tuesday, Hiroyuki Moriyama, Secretary-General of the ruling Liberal Democratic Party and a close confidant of Prime Minister Shigeru Ishiba, announced his intention to resign, contributing to the yen's decline. Moriyama's resignation could affect Ishiba's political fortunes, as he has been resisting calls for his resignation following his defeat in the Senate election. However, the yen subsequently rebounded significantly on Friday, helped by Japan's chief trade negotiator detailing the details of the trade agreement with the United States. Separately, according to Sunday's news release, Prime Minister and LDP President Shigeru Ishiba held an emergency press conference at the prime minister's official residence, announcing his resignation as prime minister and LDP president, originally scheduled to serve until September 2027.

The yen continued to trade between 146.76 and 149.13 last week, remaining in a range of 146.76 and 149.13, awaiting a breakout. Key resistance and support levels for the yen are currently 145.80 and 149.20/80, respectively.

Forecast range:
Resistance: 149.00 - 150.00 - 151.22 - 152.00
Support: 147.60 - 146.70 - 145.50 - 145.00

This Week's News:
7/9
Japanese Prime Minister Shigeru Ishiba announces his resignation

Focus:
Monday
Japan's revised Q2 GDP (07:50)

Wednesday
Japan's September Reuters Tankan Manufacturing Business Sentiment Index (07:00)

Thursday
Japan's August Corporate Price Index (CGPI) (07:50)

Any questions? contact our professional analysis team