USD/JPY faces pressure as Takaichi becomes Japan's first female PM

USD/JPY is trading cautiously around 149.50 as markets digest the implications of Sanae Takaichi becoming Japan's first female prime minister. The appointment, achieved on her third attempt after recent political turbulence, introduces new uncertainty regarding Bank of Japan monetary policy direction. Takaichi, known for her hawkish economic views and support for normalizing monetary policy, could accelerate the BOJ's departure from ultra-loose settings. Market participants are closely monitoring her stance on yen weakness and inflation targeting, with immediate resistance seen at 150.00 psychological level and support at 149.00. Her leadership may strengthen the yen if she pushes for faster policy normalization, potentially pressuring USD/JPY lower. Traders should watch for her initial policy statements and cabinet appointments, which could provide clearer direction for Japan's monetary trajectory and impact cross-yen pairs significantly.