There’s a report doing the rounds that a lawmaker in Japan’s ruling LDP party has collected enough signatures to request the convening of a joint meeting of both houses of the National Diet. However, it is unclear as to what exactly this is for. Is it to do with trying to oust Ishiba? One would think that such a motion will take place instead during the internal party meeting next week on 31 July.
But either way, it seems to be stirring up plenty of emotions and sentiment in the market right now. The Japanese yen has fallen, with USD/JPY moving back up to test its 200-hour moving average (blue line) on the day.
USD/JPY sellers have made some good strides this week but the latest rebound from late yesterday and today is threatening to undo all of that. A push above the 200-hour moving average will also then see buyers seize back near-term control of the pair.
Ishiba’s fate is most likely sealed at this point but the question is, can Japan’s ruling coalition win back the favour of voters or is this the start of a broader political uprising in the country?
This article was written by Justin Low at investinglive.com.