In September 2007，Abe was forced to resign. The Liberal Democratic Party was confronted with a series of problems such as the old-age pension，political scandal，Democratic Party’s striving for power，etc. Yasuo Fukuda was entrusted with a mission to form a cabinet at this critical and difficult moment. This paper analyses Japan’s political orientation after Fukuda taking power from three aspects. Firstly，Fukuda cabinet will pay its main attention to resolve the livelihood problem and regard the environment issue as one of its priorities；secondly，it has to balance the inheritance and changes in foreign policies；thirdly，there is still some uncertainty about whether the two-party system would be achieved. The Senate and House of Representatives are controlled respectively by the two parties. Thus，it is difficult to maintain long-term political stability.