Yen Weakens After LDP Wins Comfortable Majority

JPY underperforms in early Asia-Pac trade with final results of Japan's general election doing the rounds. The ruling LDP retained a single-party "absolute stable majority" despite slightly reducing its presence in the lower house. Nonetheless, the LDP's performance in its first election under PM Kishida was better than anticipated by pollsters and betting markets (PredictIt) on the eve of the vote.

• Stability provided by the comfortable majority secured by the LDP means that the new administration will have a free hand in compiling and implementing a promised multi-trillion-yen stimulus package.
• USD/JPY has added 24 pips so far and last operates at Y114.19. Bulls look to a clearance of Oct 20, 2021/Nov 6, 2017 highs of Y114.70/73 before taking aim at Mar 10, 2017 high of Y115.51. Bears need a dip through Oct 12 low of Y113.00 before targeting Sep 30 high of Y112.08, a recent breakout level.
• Japan's final Jibun Bank M'fing PMI will hit the wires later today, with a couple of remaining PMI readings coming up Wednesday. On a different front, the BoJ will release the minutes from their Sep monetary policy meeting tomorrow.