I just noticed that USD/JPY has moved up to around 157.45 in the Asian market after the Liberal Democratic Party of Takashi won a significant election recently. It seems that the market is seeing the possibility of more stimulative economic policies from Japan, which is causing the yen to weaken.

What’s interesting is that the LDP secured 352 seats out of 465, and with that alone, they have a majority. This gives Takashi the power to push forward with various plans. However, there are concerns about reducing food taxes and increasing defense budgets, raising questions about where Japan will find the funds, which has led to some yen selling pressure.

Nevertheless, Japan’s finance minister warned that they are ready to intervene in the market if necessary and is in contact with the U.S. to maintain stability. The next key data to watch is the U.S. employment report, which is expected to show an increase of about 70,000 jobs. The unemployment rate is likely to stay steady at 4.4%. This data could be a game-changer for the direction of this pair.