USD/JPY Slips; Japan Party Leader Contest in Focus -- Market Talk

Dow Jones
Sep 09

0625 GMT - USD/JPY Slips amid a decline in UST yields and USD as markets brace for U.S. data, OCBC strategists say. Focus is on the timing of Japan's LDP election, which market chatter puts at next month, with a date due to be announced today, say Frances Cheung and Christopher Wong. The victor will have to win a vote in parliament to become the next prime minister. Political uncertainties may hinder BOJ policy normalization, which OCBC thinks can be undermining the yen. But that should reverse when clarity emerges. Moreover, Fed easing in due course should help bring USD/JPY lower amid Fed-BOJ policy divergence. Markets price in nearly three Fed rate cuts for the year, they note. USD/JPY last down 0.4% at 146.98. (fabiana.negrinochoa@wsj.com)

 

(END) Dow Jones Newswires

September 09, 2025 02:25 ET (06:25 GMT)

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