USD/JPY: There Is A Pattern For Price Action When Snap

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Japanese PM Shinzo Abe called a snap election in Japan. This is not the first time and the team at BTMU seems a pattern.

Here is their view, courtesy of eFXnews:

BTMU FX Strategy Research notes that USD/JPY tends to rise when snap elections are called, correlated to the Nikkei stock price index.

“Seasonal JPY repatriation may be dying down. Many Japanese investors may take gains at the beginning of 2H, then start taking risks again on momentum ahead of the snap election. Campaigning will get underway October 10. Politicians may start presenting their policy ideas ahead of the official election period.

The snap election may not impact USDJPY next week, as fiscal policy management, structural reform, and QQE monetary policy proposals are not likely to be very detailed,” BTMU adds.

BTMU is neutral on USD/JPY around current levels seeing the pair trading in 111.50-114-50 range in the near-term.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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