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ForexMedium•13 February 2026•

1 min read

USD/JPY Slides on 'Sell the Fact' Reaction Post-Japan Election Amid NFP Anticipation

Donald Trump against maps of the US and Iran, with oil barrels, pipelines, derricks, and upward financial charts amidst flames.

The USD/JPY pair experienced a downward correction as traders reacted to Takaichi's victory in the Japanese lower house election with a 'sell the fact' strategy. This political development triggered a rally in the Japanese Yen, while the US Dollar faced broad pressure ahead of the critical Non-Farm Payrolls (NFP) report. Market participants are currently pricing in approximately 58 basis points of easing by the Federal Reserve for the remainder of the year. Meanwhile, the Bank of Japan maintained its interest rates steady but slightly upgraded its growth and inflation forecasts, adding to the Yen's strength. Investors are now closely monitoring US labor market data, which is expected to be the primary catalyst for the next major move in the DXY.