Fundamental Analysis
The Nikkei 225 surged sharply in a celebratory “Takaichi market,” gaining more than 1,800 points at one stage.
USD/JPY jumped significantly with a large opening gap, reflecting yen weakness and higher stock prices.
The U.S. government shutdown remains unresolved, and its impact is gradually spreading.
Yen Weakness and Stock Rally Driven by Takaichi’s Victory
Takaichi has been elected as the new president of the Liberal Democratic Party.
Markets had largely priced in a win by Koizumi, so the result came as a surprise.
Takaichi is known for her focus on economic stimulus measures, her cautious stance on rate hikes, and her support for active fiscal policy — a dovish combination.
Because she is unlikely to support rate hikes, the yen is being sold, accelerating depreciation.
Meanwhile, her pro-stimulus stance is driving a stock market rally.
At the start of the week, USD/JPY is approaching the 150 level, while the Nikkei 225 has gained over 1,800 points at one point.
The key point for USD/JPY will be whether it can break above the recent high at 149.95.
It is expected that there are large sell orders around 150, but if stop-loss orders are triggered, the pair could rise toward the mid-150 range.
【USDJPY／DAY】
Professional USD/JPY Day Trading Strategy
The pair is on the verge of reaching the 150-yen level for the first time since August 1.
On the 1-hour chart, the RSI is above 80, suggesting that a pullback may occur at some point.
Since Takaichi has become the new LDP president, a buy strategy for USD/JPY is recommended.
Because the pair has surged rapidly, traders should look for buying opportunities on dips —
specifically around 148.65 yen and 148.25 yen.
Alternatively, traders can consider selling after the price spikes higher due to stop-loss buying, aiming to capture profit-taking moves.
A sell limit could be placed around 150.85 yen, with a stop-loss set above 151.00 yen.
【USD/JPY — 1-Hour Chart】
Key Economic Indicators for Today
Events | Time |
|---|---|
Eurozone Retail Sales | 18:30 |