USD/YEN Update – 25/09/2017 (11:50am) – by Arjun Lakhanpal

September 25, 2017 by

USD/YEN Update – 22/09/2017 (11:50am): With no physical escalation from North Korea over the weekend, USDJPY opened up cautiously above 112.00 and traded up to 112.53 before stalling amidst some supply from real money accounts. Abe has apparently told his coalition party Komeito that he will dissolve the lower house on 28th Sept, with the potential date for a snap election being October 22nd – largely in line with market chatter. Recent actions with regard to North Korea has seen Abe’s popularity rise and another term should be JPY negative in that he is presumed to continue aggressive monetary easing policies. In the absence of geopolitical headlines, US politics should drive USDJPY this week. The republicans are due to announce details of a much awaited tax reform plan potentially today and any sort of progress should be positive. Remain tactically bullish USDJPY above 110.80/111.00.