Koeda Yoshiyuki, a 51-year-old supporter, called Sanseito “the only party that can truly tackle the big problems Japan faces today”. Sanseito relied on social media, especially YouTube, to reach voters disheartened with politics-as-usual.

TOKYO (AP) — Japanese Prime Minister Shigeru Ishiba said Monday he will stay in office to tackle challenges such as rising prices and high U.S. tariffs after a weekend election defeat left his coalition with a minority in both parliamentary chambers.

A bad night for the ruling coalition could cost the prime minister his job and make it harder to strike a deal with Washington before the August tariff deadline.

Japanese markets were closed for a holiday and global currency markets offered the only clear sign of a reaction. The yen , which had hit a three-month low of 149.18 per dollar last week, firmed to just under 147.7 after the results. That dragged the dollar (.DXY) down across the board.

The Japanese government said it is responding to "crimes and nuisances committed by some foreigners and inappropriate use of various systems."

Colin Graham of Robeco still sees the yen as 'incredibly cheap', and discusses the possibility of another occurrence of a carry trade unwind.