Chart of the day: USDJPY (23.10.2025)

The USDJPY pair remains around 152.50, recovering from losses after the recent strengthening of the yen, which reacted to the outcome of the vote in the Japanese parliament and Sanae Takaichi taking office as prime minister. Investors assume that the new government, based on a coalition between the LDP and the Ishin party, will introduce an expansionary fiscal package exceeding USD 90 billion, which may allow the Bank of Japan to further delay interest rate hikes.

Takaichi herself, known for her pro-stimulus preferences and close ideological alignment with “Abenomics 2.0,” favors looser monetary policy and greater public spending, while seeking to mitigate the effects of inflation and US tariffs on households. These expectations led to the “Takaichi trade” – a rebound of the yen, which gained in the short term as a defensive currency, but in the medium term entered a phase of weakening against the dollar again.

From a technical point of view, USDJPY maintains its bullish momentum above the main support zone of 150.00 (the area of recent local lows and the 50-day EMA), with the possibility of further gains to 153.30 if positive sentiment towards the dollar continues. Furthermore, in the short term, the key resistance point is marked by the local peak from the first half of October. At the same time, the market remains sensitive to the situation in the United States, particularly inflation data and changing expectations regarding Fed policy, which may limit further appreciation of the pair if yield spreads widen again.

Source: xStation