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USD/JPY Declines from Ishiba’s Victory

USD / JPY has declined after Shigeru Ishiba was elected to become prime minister by the Liberal Democratic Party. USD/JPY has experienced a sharp selloff, and is trading slightly above a $140.95 support level. I think USD/JPY is at risk of losing support over the next few weeks, which could cause some panic for the reverse carry trade. This will be important to monitor especially when there is a Bank of Japan policy meeting. The next policy meeting will take place on Oct. 30 – 31.

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