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USD/JPY sinks back below 153.00 as undaunted Yen continues to climb

The Japanese Yen strengthened past 153 per US Dollar on Thursday, rising for the fourth straight session after Prime Minister Sanae Takaichi’s decisive general election victory on February 8 gave her a clear mandate to pursue expansionary fiscal policy.

🔗 Source

💡 DMK Insight

The Yen’s rise past 153 per USD signals a shift in market sentiment following Takaichi’s election win. Traders should note that this strength comes from expectations of increased government spending, which could lead to inflationary pressures. If the Yen continues to strengthen, it may impact export competitiveness for Japanese companies, particularly in sectors like automotive and electronics. Watch for resistance levels around 150, as a break below could trigger further bullish momentum. Conversely, if the market perceives the fiscal expansion as unsustainable, we might see a quick reversal. Keep an eye on upcoming economic data releases and Bank of Japan statements for clues on future monetary policy adjustments. The immediate focus should be on how this affects correlated assets like Japanese equities, which could react strongly to currency fluctuations.

📮 Takeaway

Watch for the Yen’s movement around 150; a break could signal further strength, impacting Japanese exports and equities.

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