Political situation in this country is unstable and concerns over intensified US-China confrontation, causing further decline in USD/JPY.

【10/15Market Overview

Tokyo time, USD/JPY rose as caution surrounding Japan's next prime minister increased, as the expected reversal of Abe-era trades accelerated, leading to yen strength and dollar weakness. In after-hours, U.S.10 Treasury yields fell,10/10 low reached151.16 yen was breached to150.90 yen, and dropped to that level. In European hours, LDP President Sanae Takai? is interviewed with Yoshimura Hirofumi of Nippon Ishin no Kai to discuss cooperation for a leadership designation election and forming a coalition government,10/16 with reports that policy talks will begin; the dollar/yen saw a rebound first.NY time,10 month U.S.NY Fed manufacturing index came in at10.7, beating expectations▲1.8, prompting yen selling and dollar buying, lifting USD/JPY to151.73 yen. However, concerns over intensified U.S.-China tensions over trade issues weighed, and as the Dow Jones fell from a high, USD/JPY slipped toNY 151.02 yen.

【10/16Market View