The US dollar appreciates 0.3% against the Japanese yen, reaching a new high. The ruling coalition's election victory in Japan boosts the currency market.

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On February 22, Beijing time, the USD/JPY continued to strengthen, quoting at 157.66, up 0.3%. According to the latest exit poll data from Jintou, Japan’s ruling coalition is expected to win a majority in the House of Representatives election, and this political event has become an important factor driving the recent appreciation of the US dollar against the Japanese yen.

Political Elections as a Variable in the Forex Market

The expected victory of Japan’s ruling coalition in this House of Representatives election is directly impacting the foreign exchange market. The announcement of this result has prompted investors to reassess the relative value of the yen, leading to a clear upward trend in USD/JPY. Exit polls, as an important leading indicator of election outcomes, have been widely incorporated into trading decisions in financial markets.

Rising Expectations for Economic Policy Adjustments

The victory of the ruling coalition in the election signifies policy continuity, which usually influences market perceptions of Japan’s future economic policy direction. The rise in USD/JPY reflects the market’s positive view of Japan’s policy stability and also demonstrates the relative strength of the US dollar under global risk appetite. Analysts point out that post-election policy statements will continue to influence the yen’s direction, and the subsequent performance of USD/JPY remains worth watching.

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