Forex: USD/JPY printing fresh highs around 81.30

FXstreet.com (Barcelona) - The Japanese yen continues its depreciation against the greenback on Friday, pushing the cross almost one big figure since Tuesday's lows in the boundaries of 79.30
The political factor in Japan, with general elections called for mid December, and the most likely new PM S.Abe fovouring a weaker yen, is the unique driver behind this upside.

Senior Analyst at Danske Bank, M.Helt, commented "Abe has previously criticized BoJ for not doing enough to counter the strong yen and has advocated of an inflation target of 2-3% instead of the current target of 1%. Hence, a change in government also implies a higher probability of a weaker JPY".

"We expect BoJ to continue to deliver considerable monetary easing and expect the yen to weaken significantly against both USD and EUR over the coming six months time", he concluded.

At the moment, the cross is up 0.13% at 81.27 facing the next hurdle at 81.47 (61.8% of Mar-Sep slide) followed by 81.71 (high Apr.23) then 81.78 (high Apr.20) and the psychological level of 82.00
On the downside, a break below 80.64 (high Nov.2) would aim to 80.26 (Tenkan-Sen line) then 80.00 (high Nov.8) and 79.86 9Kinjun-Sen line).