**USD/JPY Climbs Above 149.00 After Takaichi’s Win Signals Policy Continuity in Japan**
*Based on the original reporting by FXStreet staff with expanded context and analysis*
—
### Overview
The US dollar strengthened against the Japanese yen on Friday, surging above the 149.00 mark after Japanese politician Sanae Takaichi secured a significant victory. Takaichi’s win, coupled with signals of no imminent rate hike by the Bank of Japan (BoJ), reinforced the prevailing monetary divergence between the United States and Japan. This divergence continues to direct the currency dynamics between USD and JPY, attracting global forex traders’ attention as the yen edges closer to the psychological 150.00 barrier.
—
### Political Developments: Takaichi’s Win and Policy Implications
– **Sanae Takaichi**, an influential conservative in the ruling Liberal Democratic Party (LDP), achieved a pivotal win, enhancing her standing within Japanese politics.
– Her victory is widely interpreted as an endorsement of the ongoing path charted by current Prime Minister Fumio Kishida, particularly on economic and monetary policy.
– With Takaichi’s influence bolstering the current administration:
– Investors expect **policy continuity**, reducing the likelihood of abrupt or hawkish moves by Japanese authorities.
– The **Bank of Japan’s ultra-loose monetary policy** stance is anticipated to persist for the near term.
Takaichi’s advocacy for accommodative policies aligns with long-standing BoJ efforts to stimulate inflation and growth through negative interest rates and extensive bond-buying. Conversely, unlike global peers tightening their monetary levers, the BoJ remains among the few major central banks retaining negative rates.
—
### Market Reaction: USD/JPY Breaks Higher
#### Immediate Forex Market Response
– The USD/JPY pair ascended past the 149.00 threshold, a level viewed by traders as psychologically and technically significant.
– The move was fueled by the combination of:
– **Reduced risk of near-term BoJ rate hikes**
– The Federal Reserve’s relatively hawkish guidance
#### Technical Analysis
– **Support and Resistance Levels**:
– Support zones accumulated near 148.60 and 148.00.
– Resistance is cemented at 149.50, with potential for further upside towards the pivotal 150.00 round number if bullish momentum continues.
– **Indicators**:
– The daily Relative Strength Index (RSI) remains in bullish territory.
– Moving averages trend upwards, reflecting ongoing dollar strength.
#### Trading Sentiment
– Many market participants believe that intervention by Japanese authorities is unlikely unless the USD/JPY pair breaches 150.00 or accelerates rapidly beyond.
– The reluctance for currency intervention stems from previous efforts in late 2022, which were costly and only briefly effective.
—
### Monetary Policy Divergence: The Core Driver
#### Bank of Japan: On Hold
– The BoJ, under Governor Kaz
Read more on AUD/USD trading.