Breaking: USD/JPY jumps above 110.00 as Japan’s PM Suga likely to resign
|Japan’s Prime Minister Yoshihide Suga is likely to resign, Reuters reports, citing headlines from the Kyodo news agency.
The Japanese media outlet reports that PM Suga will not run in the leadership vote for his party this month.
Additional headlines hitting the wires suggest that Suga will step as a PM down on September 30 and is said to spend his time until then focusing on measures to address the coronavirus pandemic and associated economic damage.
Market reaction
USD/JPY initially slipped to 109.79 before bouncing sharply to recapture the 110.00 level, in an immediate reaction to the Japanese political news. The spot is last seen trading at 110.01, up 0.08% on the day.
Meanwhile, the Japanese benchmark index, the Nikkei 225 is jumping over 1.5% to recapture 29,000 on expectations of a fresh economic stimulus package from the new leadership.
Investors await the US NFP data for further impetus while keeping an eye on Japanese politics. Japan PM Suga is due to speak around 0400 GMT, per the Jiji news agency.
On Thursday, the Japanese ruling Liberal Democratic Party (LDP) Policy Chief and Suga’s rival, Fumio Kishida, said: “An economic stimulus package worth "tens of trillions of yen" was needed to combat the coronavirus pandemic.”
USD/JPY: 15-minutes chart
USD/JPY: Technical levels to watch
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