• USD/JPY dipped on Tuesday as broad dollar weakness outweighed Japan’s political turbulence.
• The yen came under pressure Monday following the sudden resignation of Prime Minister Ishiba, which cast fresh uncertainty over Japan’s political and economic outlook.
• The unexpected announcement clouded expectations for the Bank of Japan, adding volatility as investors assessed potential shifts in policy direction.
• Political maneuvering is already underway, with several hopefuls preparing leadership bids. Markets reacted cautiously, with traders wary of any policy implications tied to the new leadership contest.
• Renewed uncertainty over the political landscape across various economies has rattled currency and bond markets in the past few sessions.
• Immediate resistance is located at 147.59(SMA 20 ), any close above will push the pair towards 148.33 (38.2%fib).
• Support is seen at 146.57(50%fib) and break below could take the pair towards 146.10 (Lower BB ).
Recommendation: Good to buy around 146.60 with stop loss of 146.00 and target price of 147.50
