The Japanese Yen (JPY) has taken a relatively defensive stance ahead of tomorrow’s LDP leadership vote. Fiscal outlook key risk for Yen trajectory"The market view that there would be another opportunity to realize JPY valuations has contributed to the JPY retaining a solid holdings position. However, should the next administration adopt a more expansionary fiscal tone, it would be difficult to dismiss the impact on policy execution." "The knock-on effect on the JPY would be obvious, though for now it appears that much of the selling is being undertaken through USD/JPY purchases. Even if the status quo generally prevails, iFlow’s JPY holdings figure indicates it could be difficult to add to JPY longs aggressively from current levels, notwithstanding ongoing valuation attractions."