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The USD/JPY pair experienced a sharp decline for the second consecutive session, driven by Japanese political stability and disappointing US economic data. Sanae Takaichi's decisive election victory with a two-thirds majority triggered significant capital inflows into the Yen and Japanese equities, bolstering confidence in structural reforms. Meanwhile, US retail sales figures missed market expectations, exerting further downward pressure on the Greenback amid rising expectations for Federal Reserve rate cuts. Technically, the pair successfully broke below its 100-day moving average, signaling a potential move toward the 152.27 support level. Market participants are now shifting their focus to the upcoming NFP report to gauge the next steps for US monetary policy and the Yen's trajectory.
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