Asia FX: yen near 18-mth low amid election talks, won reverses Bessent-backed jump

In the Asian forex market, the yen is nearing an 18-month low, influenced particularly by discussions surrounding upcoming elections in Japan. This movement heightens concerns among market participants, prompting investors to closely monitor the future direction of the currency. The key factor will be how recent discussions on economic and monetary policy affect the yen's value. Additionally, the South Korean won has reversed its surge backed by Bessent. This reversal reflects the sensitivity of the won to developments in the US markets, leading many investors to keep a close watch on its movements. Market reactions are expected to be highly responsive to the political situation and economic data releases across countries, impacting future trading strategies. As the elections in Japan approach, the depreciation of the yen could temporarily improve competitiveness in overseas markets; however, this strategy comes with risks. Investors should proceed cautiously, paying close attention to economic indicators and technical signals.