The yen is not indifferent to the politicians
21.11.2014
On Friday, the USD/JPY pair is adjusted after a political decision and an economic commentary.
It turns out that the concrete JPY still has a soft spot: the yen is not indifferent to political decisions, since economic moments recently do not bother it.
On Friday morning, the Prime Minister of Japan Shinzo Abe dissolved the lower House of Representatives, so that at the upcoming elections on December 14 he can get more support for his program in economics and politics.
The Japanese economy is recovering too sluggishly after the April increase of the sales tax, the trust rating of Abe is falling – it is clearly visible that new mechanisms to increase the levels of trust are needed.
Do recall that now the rate of sales tax in Japan is estimated at 8% (it was increased from 5%), and in the following year the figure can be raised again.
Almost simultaneously with the decision of the Abe sounded the comments from the Minister of Finance of Japan Mr. Aso relative to the sharp fall of the yen against the US dollar. Indeed, the yen is now trading at the lows of 1995.
Among the population, by the way, there is a growing dissatisfaction with the too rapid pace of devaluation of the national currency.
It is important that the cheapening of the "weight" of the yen still does not help the exporters.
RoboForex Analytical Department
It turns out that the concrete JPY still has a soft spot: the yen is not indifferent to political decisions, since economic moments recently do not bother it.
On Friday morning, the Prime Minister of Japan Shinzo Abe dissolved the lower House of Representatives, so that at the upcoming elections on December 14 he can get more support for his program in economics and politics.
The Japanese economy is recovering too sluggishly after the April increase of the sales tax, the trust rating of Abe is falling – it is clearly visible that new mechanisms to increase the levels of trust are needed.
Do recall that now the rate of sales tax in Japan is estimated at 8% (it was increased from 5%), and in the following year the figure can be raised again.
Almost simultaneously with the decision of the Abe sounded the comments from the Minister of Finance of Japan Mr. Aso relative to the sharp fall of the yen against the US dollar. Indeed, the yen is now trading at the lows of 1995.
Among the population, by the way, there is a growing dissatisfaction with the too rapid pace of devaluation of the national currency.
It is important that the cheapening of the "weight" of the yen still does not help the exporters.
RoboForex Analytical Department
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.