USD/JPY faces pressure as Japan PM Takaichi signals fiscal responsibility

USD/JPY traded cautiously around 151.80 following Japanese Prime Minister Takaichi's commitment to responsible fiscal policy, marking a shift from her previously hawkish stance. The PM emphasized an 'economy first, then fiscal policy' approach, pledging to reduce Japan's debt-to-GDP ratio while maintaining market confidence. Her announcement includes plans to compile economic measures and submit a supplementary budget to parliament. This more moderate fiscal stance could ease pressure on the Bank of Japan to normalize policy aggressively, potentially limiting yen strength. Market participants note Takaichi's rhetoric appears more restrained now that she holds office, suggesting a pragmatic approach to balancing growth and fiscal sustainability. Technical resistance for USD/JPY remains at 152.20, with support established at 151.40. Traders await concrete policy details to gauge the actual impact on the yen's trajectory.