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4 Dec 2014
JPY opinion polls signal public likely to vote in favour of Abenomics – BTMU
FXStreet (Barcelona) - Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, notes that opinion polls suggest the election results would deliver a significant vote of confidence in favour of the current government and its Abenomics policies.
Key Quotes
“The yen has continued to weaken in the Asian trading session with USD/JPY rising to within touching distance of the 120.00-level. The next key resistance level comes in at 124.14 which is the pre-financial crisis high from June 2007.”
“Yen weakness has extended after the latest opinion polls signalled that the LDP is on track to win more seats in the upcoming election on the 14th December. The coalition government is also on course to maintain its’ two-thirds majority.”
“In projections by the Nikkei, Asahi, Yomiuri, Sankei and Mainichi newspapers, the LDP is expected to win about 300 out of the 475 seats compared to its current holding of 294 seats. If repeated at the election, the results would deliver a significant vote of confidence in favour of the current government and it’s Abenomics policies.”
“It would strengthen Prime Minister Abe’s leadership position and increase the likelihood that the pace of economic reforms will accelerate following the election. A vote in favour of Abenomics is also likely to reinforce investor expectations that the yen will continue to weaken given that it has been very successful so far at generating a significantly weaker yen.”
Key Quotes
“The yen has continued to weaken in the Asian trading session with USD/JPY rising to within touching distance of the 120.00-level. The next key resistance level comes in at 124.14 which is the pre-financial crisis high from June 2007.”
“Yen weakness has extended after the latest opinion polls signalled that the LDP is on track to win more seats in the upcoming election on the 14th December. The coalition government is also on course to maintain its’ two-thirds majority.”
“In projections by the Nikkei, Asahi, Yomiuri, Sankei and Mainichi newspapers, the LDP is expected to win about 300 out of the 475 seats compared to its current holding of 294 seats. If repeated at the election, the results would deliver a significant vote of confidence in favour of the current government and it’s Abenomics policies.”
“It would strengthen Prime Minister Abe’s leadership position and increase the likelihood that the pace of economic reforms will accelerate following the election. A vote in favour of Abenomics is also likely to reinforce investor expectations that the yen will continue to weaken given that it has been very successful so far at generating a significantly weaker yen.”