USD/JPY Dives Below 105.00 Level After PM Abe’s New Cabinet Line-Up

By DailyFx | September 03, 2014 AAA

DailyFX.com -

Talking Points:

  • Japan Prime Minister Shinzo Abe Unveils 5 Women to Sit In his Cabinet
  • Yasuhisa Shiozaki Is Appointed as Health Minister in Abe’s Cabinet.
  • USD/JPY Plunges Below 105.00 After the Cabinet Reshuffle Announcement.

Want to trade with proprietary strategies developed by FXCM? Find out how here.

Prime Ministerof the third-largest economy, Shinzo Abe, had a new line-up in his Cabinet and was announced by Japan’s Chief Cabinet SecretaryYoshihide Suga. The announcement swept the headlines as the Japanese Government sent a strong message about his firmness on restoring women as workers and leaders by electing five-women to sit on his Cabinet. Moreover, Yasuhisa Shiozaki was appointed as health minister, which puts him in charge of the world’s biggest retirement fund. He is believed to be a candidate that favors the re-weighting of the Government Pension Investment Fund to hold more risky assets.

The reaction of this event caused the Yen to strengthen against the US Dollar to trade back below 105.00 level. In addition, the announcement resulted in the benchmark Nikkei 225 stock index to erase most of it earlier gains. This repercussion may have been due to a deterioration in the possibility of further easing by the Shinzo Abe government.

In regards to technical analysis,DailyFX Currency Strategist Ilya Spivak mentions near-term support at 104.84 and resistance at 105.24. He remains flat for now as he argues against entering short with prices trading in close proximity to support level and there is an absence of a defined bullish reversal signal.Meanwhile according to DailyFX Speculative Sentiment Index, the ratio of long to short positions in the USD/JPY sta

near-term support to 1.6533 (38.2% Fib Exp.) and resistance at 1.6613 (trend line resistance). He remains flat for now as he argues against entering short with prices trading in close proximity to support level and there is an absence of a defined bullish reversal signal.Meanwhile according to DailyFX Speculative Sentiment Index, 39 percent of FXCM retail traders are long USD/JPY.

USD/JPY 5 Minute Chart

USD/JPY Dives Below 105.00 Level After PM Abe's New Cabinet Line-Up

Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

New to FX? START HERE!

Edward Hyon, DailyFX Research Team

Keep up to date on event risk with DailyFX Calendar

comments powered by Disqus
Related Forex Analysis
  1. GBP/USD upside remains corrective – Commerzbank
    Forex News

    GBP/USD upside remains corrective – Commerzbank

  2. USD/CHF shows recovery attempts, as it bottomed at 0.9340
    Forex News

    USD/CHF shows recovery attempts, as it bottomed at 0.9340

  3. SEB:  More EUR/USD buying seen above 1.2943 - eFXnews
    Forex News

    SEB: More EUR/USD buying seen above 1.2943 - eFXnews

  4. USD/CAD at Risk for Larger Downside Correction on Sticky Canada CPI
    Forex News

    USD/CAD at Risk for Larger Downside Correction on Sticky Canada CPI

  5. What’s the sentiment around the EUR/USD today? – Scotiabank and OCBC Bank
    Forex News

    What’s the sentiment around the EUR/USD today? – Scotiabank and OCBC Bank

Trading Center