JPY: Snap election talk lifts yields, weakens the yen – Société Générale

"The current news exemplifies the impact of political uncertainty on currency markets. Speculation around a potential snap election has led to rising bond yields, prompting both domestic and foreign investors to sell the yen. In such an unstable environment, there is a tendency for investors to move towards safer assets; however, as long as selling pressure on the yen persists, USD/JPY is likely to continue its upward trend. Careful consideration of risks is necessary, but the market's reaction will be significantly influenced by the outcome of the elections and any resulting policy changes."