USD/JPY Rises as Japan's LDP Leadership Crisis Deepens

USD/JPY has advanced 0.4% to 146.85 as political uncertainty grips Japan following LDP Secretary-General Hiroshi Moriyama's resignation announcement. The yen weakened across the board as markets assess potential implications for Bank of Japan policy continuity amid the ruling party's leadership turmoil. The pair broke above the 146.50 resistance level, supported by rising US Treasury yields and concerns about Japan's political stability. Russian oil export data showing increased flows to Asia added to yen pressure through potential trade balance implications. Technical indicators suggest bullish momentum, with the next resistance at 147.50 (August high) while support sits at 146.00. The political vacuum could delay BoJ's normalization plans, despite 15bps of rate hikes priced by year-end. Traders await further developments in Japan's political landscape while monitoring US dollar dynamics ahead of this week's employment data.