USD/JPY flows: JPY Slumped after Takaichi Elected

Over the weekend, we see Sanae Takaichi elected to be the new LDP party leader, defeating Shinjiro Koizumi. As known as a prodigy of "Abenomics", she has been viewed as tilted towards more fiscal spending and her remarks regarding BoJ over the weekend is definitely capturing eyeballs even it is not a direct order.

Market participants are scaling back their expectation of a October hike and see USD/JPY rocket higher to 149.70 currently, opening significantly higher at 149.43 from 147.46 Friday's close.