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15 Dec 2014
Abe victory to weaken the Yen - Scotiabank
FXStreet (Guatemala) - Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank notes that the Abe victory s expected to weaken the Yen.
Key Quotes:
"PM Abe’s LDP government won 291 seats in the Lower House, with the Komeito coalition bringing them to 326 seats out of 475 and keeping the super majority. Accordingly, PM Abe has the support to push ahead with his policies."
"Over time this is likely to drive a weaker JPY (USD/JPY higher). The quarterly BoJ Tankan survey suggested a deterioration in large, medium and small manufacturing and non‐manufacturing firms, a disappointing result that warns of an ongoing slowdown in Japan."
"USD/JPY short‐term technicals: mixed—with the chart pattern providing few clues. Support lies at the recent low of 117.44; while resistance comes in at recent congestion at 119.69."
Key Quotes:
"PM Abe’s LDP government won 291 seats in the Lower House, with the Komeito coalition bringing them to 326 seats out of 475 and keeping the super majority. Accordingly, PM Abe has the support to push ahead with his policies."
"Over time this is likely to drive a weaker JPY (USD/JPY higher). The quarterly BoJ Tankan survey suggested a deterioration in large, medium and small manufacturing and non‐manufacturing firms, a disappointing result that warns of an ongoing slowdown in Japan."
"USD/JPY short‐term technicals: mixed—with the chart pattern providing few clues. Support lies at the recent low of 117.44; while resistance comes in at recent congestion at 119.69."