USD/JPY has rallied this morning as very early Tokyo has got going
It ticked to around 110.80 and stopped, but has found fresh legs as I update:
- Buyers cited as chasing momentum and taking out stop loss buyers
- Driven both by Yellen's USD rally Friday in NY and Abe sales tax delay rumours hitting over the weekend
Chatter is some sellers around now ahead of 111.000 ... let's see how that fares
There are 2 takes on the sales tax hike dealy impact on the yne.
- One is that's it's a negative for the yen ... more budget deficits, more borrowing, and so on
- The second is it reduces the pressure on the BOJ to ease further and is thus not so negative for the yen
Choose the one you like. Or choose both and trade it both ways as price developments ... errr, develop :-D