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JPY weakens as Takaichi's pro-stimulus agenda weighs - BBH

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JPY weakens as Takaichi's pro-stimulus agenda weighs - BBH

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New update 2025.10.07 19:11
JPY weakens as Takaichi's pro-stimulus agenda weighs - BBH

update 2025.10.07 19:11

JPY remains under downside pressure undermined by Sanae Takaichi's (set to become Japan's next prime minister) pro-stimulus agenda, BBH FX analysts report.

Takaichi's fiscal push keeps JPY under pressure

"Takaichi appointed former Finance Minister Shunichi Suzuki as Liberal Democratic Party (LDP) Secretary General. Suzuki moved quickly to reassure markets about the government's fiscal discipline. Suzuki said 'Even those who favor expansionary fiscal policy do not believe it's OK to ignore fiscal discipline completely...While fiscal policy is an important pillar of support, we must also fully respect fiscal discipline'."

"In parallel, Japanese Finance Minister Katsunobu Kato reiterated that currencies should move in a stable manner reflecting fundamentals. The next two resistance levels for USD/JPY are offered at 150.92 (August 1 high) and 151.30 March double-top). We would look to sell USD/JPY on overshoots above 151.00 given that USD/JPY is trading well-above the level implied by US-Japan 2-year bond yield spreads."


Date

Created

 : 2025.10.07

Update

Last updated

 : 2025.10.07

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