Japan’s ruling coalition lost its majority in an election – yen lower to open the week

Japan’s ruling coalition lost its majority in an election over the weekend, which leaves the world’s fourth-largest economy facing the prospect of minority government, or minor parties acting as linchpins in coalition.

• USD/JPY is above 153 on the Japanese election result – yen plunge

• Monday morning open levels – indicative forex prices – 28 October 2024 – YEN slammed lower

Where we’re at:

• Japan’s lower house has 465 seats
• 233 are required to form a majority
• Going into the election the ruling LDP combined with its coalition partner (which gave the two a majority in the upper house) held 288 seats in the lower house
• Current counting has LDP 191, K 24 … so 215, well short of 233 required.
• Constitutional Democratic Party of Japan is the largest opposition party, they have increased their seats to 148 (91 prior)
• Two smaller opposition parties, Nippon Ishin no Kai (has 38 seats, from 43 prior) or the Democratic Party for the People (DPP) (has 28 seats, from 7 prior) looks likely to be the partner for LDP/Komeito to get over the 233 seat line

There are still some seats to be decided.

USD/JPY gapped higher (see earlier posts for a better picture of the moves up to now) update:

10 minute candles shown.

This article was written by Eamonn Sheridan at www.forexlive.com.