OCBC: The focus in the Japanese yen area is on the two front-runners in the election for the president of the Japanese Liberal Democratic Party.

Philip Wee from the research department of DBS Group commented that the focus in the yen market is on the two front runners in the October 4th election for the president of the Liberal Democratic Party of Japan. The senior forex strategist stated that if Shinzo Abe's Successor, Fumio Kishida, wins, it could be seen as positive for the yen as he holds a reformist stance, emphasizes fiscal discipline, and is willing to cooperate with the Bank of Japan's policy normalization. Wee added that if Seiko Noda wins, it could be negative for the yen, as she supports a growth-focused agenda, promotes active fiscal stimulus measures, and continues loose monetary policy. He stated, "At the moment, the likely tendency for the USD/JPY is to remain in the lower two-thirds of the 146-149 yen range."