USD/JPY continues to unwind the run up from before the Japan snap election

The pair is down 0.7% to 153.20 levels, poised for a third straight day of losses

A case of buy the rumour, sell the fact? That seems to be the most plausible explanation, with traders also arguably feeling heavily guarded amid intervention risks. Japan prime minister Takaichi solidified her position with the snap election now giving her a powerful mandate to push forward with her fiscal plans.

The Takaichi trade remains the biggest fundamental driver of the Japanese yen but so far this week, we’re not seeing traders push that agenda.

Instead, a weaker dollar is also helping to keep things calmer on the week. That after a softer US retail sales data yesterday as well as a sharp decline in Treasury yields in the aftermath. 10-year yields in the US are down to 4.14%, well off the highs last week near 4.30%.