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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InJapan's ruling Liberal Democratic Party (LDP), led by PM Takaichi, secured a landslide victory and a supermajority mandate in the recent snap elections. PM Takaichi is now expected to proceed with aggressive fiscal expansion, including a proposal to suspend food sales tax for two years, which fundamentally pressures the Yen. However, the USD/JPY pair's recent surge above 157.50 triggered sharp verbal interventions from Tokyo officials, heightening market caution regarding direct currency action. The pair is currently trading near 155.50, remaining capped below its 200-hour moving average of 155.62 as traders weigh intervention risks. While Takaichi’s dovish fiscal outlook is yen-negative, the immediate threat of physical intervention by the Ministry of Finance is creating a temporary ceiling for the pair.