Sanae Takaichi Makes History: First Woman to Lead Japan’s Ruling Party and Serve as Prime Minister
A Breakthrough Moment in Japanese Politics
On 21 October 2025, Sanae Takaichi was elected as Prime Minister of Japan by the National Diet, becoming the first woman in the country’s history to hold either the premiership or the presidency of the ruling Liberal Democratic Party (LDP). Her election followed her victory as LDP president on 4 October 2025, marking her as the first female leader of the party.
This landmark achievement arrives in a political landscape where Japan has long lagged in gender equality — and it signals important shifts both symbolically and materially.
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Her Political Profile: Conservative Credentials and Big Ambitions
Takaichi, aged 64, is a veteran of Japanese politics — she first entered the House of Representatives in 1993 and has held several high-profile ministerial roles, including as Minister for Internal Affairs & Communications. A protégé of the late Shinzō Abe, she is known for conservative stances on national security and strong ties with the U.S. alliance. Her election followed a turbulent period for the LDP, which lost its longtime coalition partner in 2025 and formed a new coalition with the Japan Innovation Party (Ishin) to secure her parliamentary majority.
Policy Focus: Economy, Security & Japan’s Role in the World
On taking office, Takaichi signalled major directions for her government:
● She is preparing a large economic stimulus — reported to exceed ¥13.9 trillion (over US$90 billion) — to tackle inflation and spur growth.
● Her agenda emphasises stronger defence and “Japan First” policies, reflecting a hawkish approach to national security and regional geopolitics.
● She will also navigate a delicate diplomatic and trade environment: Japan is one of the world’s largest economies, with deep trade links and currency implications for global markets.
Why This Matters for Contemporary Markets & the Global Economy
While her election is domestic in nature, it has wider implications for global finance and foreign exchange (FX) markets, which are especially relevant for traders and anyone engaged in international business.
The strength or weakness of the Japanese yen (JPY) can impact currency pairs like EUR/JPY, USD/JPY, and GBP/JPY. A stronger yen could pressure exporters; a weaker yen might support them.
If the stimulus is large and inflation picks up, the risk of interest-rate changes by the Bank of Japan (BoJ) could shift, altering carry trades and global flows.
Her focus on security and potential revisions to the Japanese constitution may increase geopolitical risk premiums, adding volatility to global currency and commodity markets.
For traders at all levels — including Forex trading for beginners — this is a reminder: politics and macro-economics matter just as much (if not more) than chart patterns. At institutions like GME Academy, known also as Global Markets Eruditio, we emphasise integrating macro events into trading strategy.
Challenges Ahead: Gender Politics, Coalition Fragility & Economic Headwinds
Takaichi’s leadership is historic — but it comes with hurdles. Though she is Japan’s first female prime minister, she appointed only two women in her 19-member cabinet, drawing criticism about real progress for gender equality. Her government is a minority coalition, two seats short of a full majority in the House of Representatives, making legislative battles more difficult.
Economically, Japan faces soaring public debt, chronic deflationary pressures, a weak yen and global supply-chain disruptions. Her choices will be watched closely by investors.
Socially, despite her gender breakthrough, her conservative views on imperial succession, surname laws, and gender roles complicate perceptions of change.
What Traders Should Watch
For those engaged in Forex trading, and especially those at the beginner level, here are key signals to monitor:
JPY Movement – Look for undue strength or weakness in JPY; policy signals from the BoJ or stimulus news from Tokyo could shift trends.
Interest-Rate Signals – Any tilt toward more aggressive fiscal stimulus, inflationary pressure, or BoJ hints of normalising policy could affect carry trades.
Global Risk Sentiment – Takaichi’s foreign-policy stance and relationship with the U.S., China, and South Korea could influence safe-haven flows (e.g., USD/JPY, EUR/JPY).
Trade & Export News – Japan is highly export-oriented; any major shift in trade policy or yen strength could impact cross-economy pairs like AUD/JPY or USD/JPY.
A New Chapter — With Many Pages to Write
Sanae Takaichi’s rise represents both a breakthrough and a test. Symbolically, she shattered Japan’s highest glass ceiling. Practically, she steps into office at a moment of economic fragility and political instability. For traders, her leadership reminds us that current events matter — that leadership change, policy direction, and macro fundamentals are often what move markets.
If you’re serious about building your understanding of how global politics, currencies, and economics fit together, then you’re not just trading charts — you’re trading context.
Join our FREE Forex Workshop at GME Academy and learn how to integrate macro-trends, leadership changes, and economic data into your Forex trading strategy — whether you trade USD/JPY, EUR/JPY, or any other currency pair. Start turning global events into actionable insights.
