USD/JPY gaps higher as Japan PM Ishiba announces resignation

USD/JPY gapped 0.8% higher to 151.20 in early Asian trading Monday following news of Japanese Prime Minister Ishiba's unexpected resignation announcement. The yen weakened across the board as political uncertainty gripped markets, with EUR/JPY climbing 0.6% and GBP/JPY advancing 0.7%. Ishiba's departure raises questions about Japan's monetary policy direction, particularly regarding potential changes to the Bank of Japan's ultra-accommodative stance. The resignation comes amid growing pressure over economic challenges and ahead of crucial policy meetings. Technical indicators show USD/JPY breaking above the 151.00 resistance level, with next targets at 151.80 and 152.50. Support levels sit at 150.50 and 149.80. Traders are closely monitoring for any shifts in BoJ policy guidance under new leadership, which could significantly impact yen crosses. The political vacuum may delay any hawkish monetary policy shifts, keeping the yen under pressure near-term.