Core Viewpoint - The future direction of the Japanese yen will largely depend on the policy divergence between the Federal Reserve and the Bank of Japan, rather than domestic political factors [1] Group 1 - If the resignation of Shinto Abe leads to increased instability within the Liberal Democratic Party, the market may price in a higher political risk premium [1] - This could result in a surge of safe-haven inflows into the yen, which would help to mitigate pressure on Japanese government bond yields [1]