Kyodo News Agency publishes the latest report on Sunday, citing that Japanese Chief Secretary Yoshihide Suga is likely to be one of the contenders for the prime minister’s race after Shinzo Abe stepped down on Friday.
Abe has announced his resignation due to a worsening chronic illness.
Suga is expected to pursue the Abenomics described by Abe during his eight years in office.
Suga would join candidates such as former foreign minister Fumio Kishida and former defense minister Shigeru Ishiba, according to Reuters.
USD / JPY fell 1.15% on Friday
The USD / JPY eroded 173 pips on Friday in what was seen as a sell-off sparked by uncertainty over the Japanese political scenario following the announcement of his resignation by Prime Minister Abe.
The yen rallied sharply on the increase in safe-haven flows, pulling the spot to a new one-week low of 105.21. New developments around Japanese policy will continue to have a major impact on the USD / JPY, as traders prepare for the release of the US NFP in August.