Well, its all happening in the Yen. Over the weekend we got a good dose of chat from the new Japanese government about stimulus, and Yen weakening, and deflation fighting … and then first thing on Monday we noted that the Yen was not responding in its usual manner – the weakness of the Yen was. well, weakening (hope thats not too confusing: lets just say the Yen stopped falling, when it should have on such a weekend news barrage).
The last half hour has seen further Yen strength (Non-Japanese funds were big buyers of Yen).
OK, on to today. Expect more Japanese government comments trying to undermine the Yen. Abe is keen to get the economy improving before upper house elections in the summer. He needs to goose the economy; stimulus & Yen weakness are his methods thus far. Expect more of the same.
Topside:
- 88.10
- 87.85/90, though 87.80 is also selling just ahead of here
- 87.60/70 is initial selling now
Downside:
- 87.30/35 has shown itself this morning as a level for buyers
- Buyers at and just ahead of 87.00
- 86.75/80
