The Japanese political situation has been high drama in the past week.
On Friday, Japan's LDP opted not to pick a dovish leader of their party, causing a big drop in USD/JPY. That was followed by a snap-election call from incoming PM Ishiba.
The vote will take place on October 27 as he tries to ride a honeymoon phase.
“It is important that the new government be judged by the people as soon as possible,” Ishiba said.
The timeline will make for volatile trading in the yen throughout the month ahead. The dollar is also notable as risk assets improve on Fed rate cuts and China stimulus. US 10-year yields are up 3.8 bps today and have chopped higher since the Fed's 50 bps cut as it's seen removing tail risks around a rough recession.
The next move in this pair is likely to be driven by US economic data, particularly Friday's non-farm payrolls report.