There’s no Christmas in Japan and no Christmas break for USD/JPY. Shinzo Abe became prime minister and continued his strong tone also in office.
USD JPY 2 Year High Click image to enlarge
At least for now, there is no backing down from election promises.
USD/JPT is now trading at 85.74 after reaching 85.84 earlier. This is higher than the March 2011 high of 85.50 – a very tough resistance. Low liquidity over the holiday season certainly helped.
The levels that dollar/yen trades at now where last seen in September 2010, when the BOJ intervened for the first time.
The next lines are 86.27 and more importantly 87, which served as support in 2010. 88 is the next level. 85.50 turns into support, followed by the important line of 84.20, which was the previous 2012 peak.
For more, see the USDJPY forecast.
The heads of the BOJ have two options: either comply with the new 2% inflation target and speed up printing, or be replaced by others who will do that.
