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12 Dec 2014
JPY strong into NA open – Scotiabank
FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank notes that JPY is strong, supported by rising risk aversion and the weekend elections where PM Abe is expected to secure a super majority.
Key Quotes
“JPY is strong into the NA open, supported by rising risk aversion. The near‐term focus is the weekend election; where PMI Abe is likely to maintain a majority. For the election the LDP need to win at least 238 seats to secure a majority; 266 seats to secure an absolute stable majority and 317 seats to secure a super majority. It is widely expected that PM Abe will win at least 300 seats, allowing a coalition to provide the LDP a super majority, which gives them full power to pass bills into law.”
“USDJPY short‐term technicals: mixed—as spot has dropped lower and broken the strong upward trend line it has pressured several technical studies. Accordingly, USDJPY positioning is at risk. Support lies at the recent low of 117.44; while resistance comes in at 120.00”
Key Quotes
“JPY is strong into the NA open, supported by rising risk aversion. The near‐term focus is the weekend election; where PMI Abe is likely to maintain a majority. For the election the LDP need to win at least 238 seats to secure a majority; 266 seats to secure an absolute stable majority and 317 seats to secure a super majority. It is widely expected that PM Abe will win at least 300 seats, allowing a coalition to provide the LDP a super majority, which gives them full power to pass bills into law.”
“USDJPY short‐term technicals: mixed—as spot has dropped lower and broken the strong upward trend line it has pressured several technical studies. Accordingly, USDJPY positioning is at risk. Support lies at the recent low of 117.44; while resistance comes in at 120.00”