On October 4, 2025, Sanae Takaichi, a hard-line conservative and protégé of former Prime Minister Shinzo Abe, won the Liberal Democratic Party (LDP) leadership election, positioning her to become Japan’s first female prime minister, per POLITICO. Her pro-growth, stimulus-friendly platform has sparked a market rally, with the Nikkei 225 jumping 4.8% to a record 47,852 on October 6, approaching 48,000, per CNBC. The yen weakened sharply, breaking past 150 against the USD (USD/JPY at 150.49) and hitting record lows against the euro (EUR/JPY at 175.44), per Reuters. This shift, detailed in Bybit’s latest x FXStreet TradFi Report, reflects revised expectations for Bank of Japan (BOJ) policy, per Chainwire.
Takaichi’s victory has lowered odds of an October BOJ rate hike from 60% to 24%, with markets now pricing in a 0.75% increase by December, per the report. Her emphasis on Abenomics-style stimulus—fiscal easing and low rates—bolsters equities but pressures the yen, per CNN. The Nikkei’s surge, led by tech and defense stocks, marks its 32nd record high in 2025, per Yahoo Finance. X posts from @PlexyTrade highlight the “Takaichi Trade” as a stimulus bet, with #Japan #Markets trending [post:10].
The report warns of heightened volatility in traditional finance and crypto, as yen weakness fuels carry trades and equity momentum, per. Gold hit a record $3,924/oz, up 1%, while BTC broke $124,500, per. Bybit’s MT5 platform is recommended for navigating FX swings, per. Takaichi’s hawkish China stance could strain regional ties, impacting Asia-Pacific markets, per Al Jazeera. X analyst @notreload_ai notes the yen’s plunge past 150 as a “carry trade revival” signal [post:12].
Monitor BOJ meetings and parliamentary confirmation on October 15, per The Guardian. Nikkei support at 47,000 and resistance at 48,000 are key, per TradingView. For USD/JPY, watch 151 as intervention threshold, per Deutsche Bank. Dollar-cost average into yen-weakness plays like Nikkei ETFs or BTC with stop-losses below $112,000, per. Diversify into USDC for stability, per. Follow @TheBlock__ on X for updates. Takaichi’s leadership could propel Nikkei to 50,000 by 2026, per, but yen volatility risks a sharp reversal.
