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Sonny / ARTICLE

So the landslide victory for Takaichi in Japanese snap election has been interpreted as bullish due to his views on maintaing a loose fiscal policy. However, USDJPY is not really reflecting that. 1h bear div and strong rejection off the open. Still maintain that we are going to see a pretty savage move down this week for risk assets. Given the action over the last couple days for NQ and ES, it looks like they're developing a running flat for wave 2. Which suggests to me that a powerful move down in wave 3 is close. Probably push up a little more tomorrow off the back of this news and I will be looking to reposition in the VIX futures long.

Published Feb 09, 2026Updated Feb 09, 20262 min read
So the landslide victory for Takaichi in Japanese snap election has been interpreted as bullish due to his views on maintaing a loose fiscal policy. However, USDJPY is not really reflecting that. 1h bear div and strong rejection off the open. Still maintain that we are going to see a pretty savage move down this week for risk assets. Given the action over the last couple days for NQ and ES, it looks like they're developing a running flat for wave 2. Which suggests to me that a powerful move down in wave 3 is close. Probably push up a little more tomorrow off the back of this news and I will be looking to reposition in the VIX futures long.