USD/JPY Surges as Yen Weakens on Takaichi Win, Bitcoin Rally to $122K

USD/JPY has jumped 1.2% to 151.80 as the Japanese yen faces significant selling pressure following Sanae Takaichi's victory in Japan's ruling party election, raising concerns about continued ultra-loose monetary policy. The yen's weakness is compounded by global risk-on sentiment driven by Bitcoin's extraordinary surge past $122,000, drawing capital away from traditional safe havens. Market participants are positioning for potential BoJ policy divergence as Takaichi has historically opposed aggressive monetary tightening. The pair has broken above the key 151.50 resistance level, with next targets at 152.20 and the psychological 153.00 mark. Support now sits at 151.00, coinciding with the 50-day moving average. The 'debasement trade' narrative is gaining traction as fiscal sustainability concerns across developed economies push investors toward alternative assets, further pressuring traditional currencies like the yen.