USDJPY is getting more expensive on Tuesday; the Yen is under pressure due to a political brawl.
Bears continue putting some significant pressure on the Yen on Tuesday afternoon. The current quote for the instrument is 107.09.
A political row broke out in Japan and it makes the Yen pretty vulnerable. So, the country’s Ministry of Finance admitted the fact of falsification of denationalization documents. This refers to amendment of documents involved into sale of several parcels of land to some private school. These deals were closed through some charity funds in order not to attract attention to the Cabinet of Ministers members, who took part in approval and sale. In addition to that, it was found out that some of the documents were destroyed.
The main problem for the Yen is that Shinzō Abe, the country’s Prime Minister, who is reported to be a participant of this scandal along with his wife, has already made a statement that he wasn’t going to resign from his position (it would be catastrophic for the Yen), but was very sorry about what had happened.
This political factor may influence the Yen behavior for several days, but later investors may switch to other catalysts unless this story continues.
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