• USD/JPY edged higher on Thursday as the yen weakened amid political jitters, increasing uncertainty around the BoJ’s policy.
• Sanae Takaichi, the new leader of Japan’s ruling LDP, met with Japan Innovation Party leaders on Thursday to discuss a coalition ahead of next week’s prime ministerial vote.
• Takaichi’s path to succeed PM Shigeru Ishiba appeared certain until the LDP’s junior partner, Komeito, left their 26-year coalition last week, triggering talks with rival parties to choose the next premier.
• The LDP proposed October 21 for a parliamentary vote on the next premier, but the opposition has delayed it, citing ongoing coalition talks.
•Meanwhile,Government data showed Japan’s core machinery orders fell 0.9% month-on-month in August. Core orders, a key leading indicator of capital spending, rose 1.6% year-on-year, below the forecasted 4.8% increase.
• Immediate resistance is located at 151.94(Oct 15th high), any close above will push the pair towards 153.05 (23.6%fib).
• Support is seen at 150.59 (38.2%fib) and break below could take the pair towards 149.75 (SMA 20)
Recommendation: Good to buy around 151.00, with stop loss of 149.50 and target price of 152.00
