12 Dec 2014
USD/JPY falls below 118.50
FXStreet (Córdoba) - USD/JPY came under renewed pressure Friday and slid back below 118.50 after yesterday's bounce was capped by 119.55, and weighed by the risk-off mood and lower US yields.
Lower oil prices and Greece political uncertainty have set the risk aversion tone while stretched JPY shorts contributed to a strong sell-off this week.
USD/JPY extended the slide during European hours and fell to fresh daily lows, but it found support ahead of the 118.00 mark. At time of writing, USD/JPY is trading at 118.45, still 0.14% below its opening price, having scored a low of 118.04.
Japanese elections on Sunday
Japanese Elections will take place next Sunday, with PM Abe looking to consolidate his power to move ahead his agenda of fiscal and political reforms. "Another super-majority for Abe may put modest downward pressure on JPY, as it would signal a continuation of the current stance of monetary policy for the BoJ, at least in the short term", said Jacqui Douglas, analyst at TD Securities.
Lower oil prices and Greece political uncertainty have set the risk aversion tone while stretched JPY shorts contributed to a strong sell-off this week.
USD/JPY extended the slide during European hours and fell to fresh daily lows, but it found support ahead of the 118.00 mark. At time of writing, USD/JPY is trading at 118.45, still 0.14% below its opening price, having scored a low of 118.04.
Japanese elections on Sunday
Japanese Elections will take place next Sunday, with PM Abe looking to consolidate his power to move ahead his agenda of fiscal and political reforms. "Another super-majority for Abe may put modest downward pressure on JPY, as it would signal a continuation of the current stance of monetary policy for the BoJ, at least in the short term", said Jacqui Douglas, analyst at TD Securities.