Less than a week ago we heard a lot of dovish statements from BOJ Gov Kuroda. What is happening with Japan’s economy and are the dark times beginning for JPY? It’s time to find out!
Japan’s Leadership Race Heats Up
2021-09-07 • Updated
Yoshihide Suga left the position of Japan’s prime minister. This news juiced Japanese Markets as JP225 hit 30 000 for the first time since April 2021. Regardless of who wins the Sept. 29 leadership vote, the ruling Liberal Democratic Party is expected to perform better in a forthcoming general election than it would have under Suga.
Here are three favorite candidates:
A favored candidate of foreign investors, a victory for Taro Kono would bring a fluent English speaker into the prime minister’s office. His candidacy is already helping boost sections of Tokyo’s markets.
While not as popular with the public as Kono, some nonetheless see Kishida as the current favorite, including analysts at Citigroup Inc.
Kishida said he plans to use “vaccine passports” to normalize economic activity, which might provide sustained support to so-called reopening plays such as rail operators, airlines, travel agents, and restaurants.
She has the strongest lean towards adopting a reflationary policy. Sanae also calls for 100 trillion yen in spending on disaster prevention over 10 years.
Japanese parliament will officially name a new Prime Minister on Oct 4.
CAD/JPY, Daily chart
CAD/JPY gets squeezed between 50 and 100-day moving averages. The trend will be defined as soon as the price breaks through any of these two lines. The breakthrough any of MA will give the pair a huge impulse, that’s why we expect upcoming volatility.
At this moment it looks like the CAD/JPY is ready to drop to the 86.1 – 85.6 range, where some long trades might be opened. If the price breaks through and sticks under the 200-moving average, it will target 84.45.
In case, the price breaks through the 50-day moving average, 88.2 will be the first goal.
JP225 still did not reach the previous high at 30 500, but at this moment it looks overbought according to the RSI. We expect another pump to 30 200 level and a “double top” pattern to appear. The 30 200 – 30 500 range is perfect to open a short position with the target at 29 400 as tiny pullbacks always happen after such big movements.
We have outlooked several promising Forex pairs and the result can surprise you!
USD/JPY declined further during yesterday’s trading, reaching as low as 109.36, while our short signal from 110.20 is still active and is giving us over 80 pips.
The Turkish lira has been pressed by Turkey’s central bank (CBRT). Analysts believe USD/TRY will reach 10.00 by the year's end.
One of the largest tech companies in the US will reveal its financial results for the third quarter already tonight after the market closing! Await the release at the midnight (GMT+3).
Coinbase is a secure online platform for buying, selling, transferring, and storing digital currencies…