Nomura: LDP landslide increases short-term pressure for yen weakness; intervention red line remains at 160 level
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Sanae Takaichi’s landslide election victory, although her post-election stance has turned more moderate, the market may restart the “Takaichi Trade” and further sell off the yen. Once USD/JPY approaches the 160 mark, the risk of intervention by Japan’s Ministry of Finance will soar.
Today, USD/JPY briefly