Fundamentals in Politics:
Japan's ruling coalition (Liberal Democratic Party and Komeito) has lost its majority in the upper house of parliament in recent elections. This is a significant setback for Prime Minister Shigeru Ishiba, though he has stated he will remain in office to combat inflation and continue trade talks with the US.
The election results indicate a surge in support for right-wing populist parties, fueled by public frustration over economic challenges like soaring rice prices and inflation exceeding wage growth. This weakened position for Ishiba's government could lead to legislative gridlock and impact future policy decisions, including those related to trade and the Bank of Japan's monetary policy.
JPY has been experiencing notable fluctuations, largely influenced by the recent election results and their potential implications for monetary policy:
Initial Yen Strength Post-Election: Following the weekend election results where Japan's ruling coalition lost its upper house majority, the Japanese Yen showed significant strength, gaining nearly 1% against the USD. This was somewhat counter-intuitive for some analysts who expected political uncertainty to be yen-negative.
However, technicall DRAGON ( GBPJPY) seem to make a correction after testing 200.000 line.
Closing below 197.000s will trigger a deeper bearish correction.
Good Luck!
Japan's ruling coalition (Liberal Democratic Party and Komeito) has lost its majority in the upper house of parliament in recent elections. This is a significant setback for Prime Minister Shigeru Ishiba, though he has stated he will remain in office to combat inflation and continue trade talks with the US.
The election results indicate a surge in support for right-wing populist parties, fueled by public frustration over economic challenges like soaring rice prices and inflation exceeding wage growth. This weakened position for Ishiba's government could lead to legislative gridlock and impact future policy decisions, including those related to trade and the Bank of Japan's monetary policy.
JPY has been experiencing notable fluctuations, largely influenced by the recent election results and their potential implications for monetary policy:
Initial Yen Strength Post-Election: Following the weekend election results where Japan's ruling coalition lost its upper house majority, the Japanese Yen showed significant strength, gaining nearly 1% against the USD. This was somewhat counter-intuitive for some analysts who expected political uncertainty to be yen-negative.
However, technicall DRAGON ( GBPJPY) seem to make a correction after testing 200.000 line.
Closing below 197.000s will trigger a deeper bearish correction.
Good Luck!
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Cycle Sniper Indicator: mql5.com/en/market/product/51950
Cycle Sniper Indicator: mql5.com/en/market/product/51950
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Discord Channel : discord.gg/Ku9kzfq
Cycle Sniper Indicator: mql5.com/en/market/product/51950
Cycle Sniper Indicator: mql5.com/en/market/product/51950
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.