Forex: USD/JPY points for 84.17 yearly high; BoJ ultra-dovish prospects unaltered
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USD/JPY
FXstreet.com (Barcelona) - Yen sellers continue to rule the roost ahead of Sunday's Japanese election results. USDJPY sits currently at 83.60, after a shy retest of last Asian high at 83.66.
The pair remains supported by Japanese election surveys, suggesting a clear victory by the largest opposition Liberal Democratic Party (LDP) from Mr. Abe, which together with its ally New Komeito, are expected to win + 300 seats. Above 320 seats should pave the way for the newly appointed government to pass controversial bills, including a more dovish BoJ under Abe's regime.
USDJPY technicals, in view of in-house technical strategist Valeria Bednarik, suggests that more work to the upside is due.
"The hourly chart shows indicators aiming higher above their midlines, while price stands well above 100 and 200 SMA's that also head north. In the 4 hours chart, indicators corrected extreme overbought levels and regained the upside, pointing for a soon test of 84.17 yearly high. Steady gains above will open doors for a continuation towards the 86.00" Valeria said.
The pair remains supported by Japanese election surveys, suggesting a clear victory by the largest opposition Liberal Democratic Party (LDP) from Mr. Abe, which together with its ally New Komeito, are expected to win + 300 seats. Above 320 seats should pave the way for the newly appointed government to pass controversial bills, including a more dovish BoJ under Abe's regime.
USDJPY technicals, in view of in-house technical strategist Valeria Bednarik, suggests that more work to the upside is due.
"The hourly chart shows indicators aiming higher above their midlines, while price stands well above 100 and 200 SMA's that also head north. In the 4 hours chart, indicators corrected extreme overbought levels and regained the upside, pointing for a soon test of 84.17 yearly high. Steady gains above will open doors for a continuation towards the 86.00" Valeria said.
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