Created
: 2024.10.28
2024.10.28 19:40
USD/JPY rose, following hung parliament outcome. According to Japan's NHK public TV, LDP coalition is set to lose a 233-majority in the 465 seat lower house. USD/JPY was last seen at 152.55 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
"LDP coalition only garnered 215 votes and would urgently need to find partners. The Constitutional Democratic Party of Japan, led by centrist leader/ former PM (2011-12) Yoshihiko Noda made huge gains to 148 votes. He can push to seek a coalition with other opposition groups, but it was last known that his party has had little success finding partners."
"A hung parliament means that LDP coalition may face challenges passing policies in parliament. Uncertainty would weigh on Japanese equities and JPY in the interim. BoJ meeting (Thu) is likely a non-event as policymakers are likely to hold off rate increases until there is greater clarity with government and economic policies. Slowing BoJ policy normalisation and Fed in no hurry to cut, alongside US election risks may imply that USDJPY may well stay supported in the interim."
"Bullish momentum on daily chart intact while RSI is again rising towards overbought conditions. Near term risks skewed to the upside. Resistance at 155 and 156.50 (76.4% fibo). Support at 151.50 (200 DMA), 150.60/70 levels (50% fibo retracement of Jul high to Sep low, 100 DMA). We cautioned that verbal intervention could kick in only if USD/JPY trades quickly up to 155/156 levels but we doubt there will be actual intervention."
Created
: 2024.10.28
Last updated
: 2024.10.28
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy