A crisis of confidence in the yen looms over Japan PM Takaichi's election gamble

An election notice board displaying posters of candidates in Tokyo, Japan, on Tuesday, Jan 27, 2026. Official campaigning for the election started Tuesday as Japan's Prime Minister Sanae Takaichi seeks to solidify her majority in the lower house of parliament. -- Photographer: Kiyoshi Ota/Bloomberg

TOKYO (Reuters): The spectre of coordinated yen buying by Tokyo and Washington has propped up Japan's currency, but history suggests the impact of an actual intervention could be limited, especially because Prime Minister Sanae Takaichi is basing her snap election campaign on expanded stimulus measures.

With a vote for the lower house of Parliament in less than two weeks serving as a mandate on Takaichi's mission to reflate the economy, Japanese authorities are openly hinting at stepping into the markets for the first time since July 2024.