The Japanese yen remained weak today on speculations that the coming elections will bring new leadership for Japan, resulting in additional stimulating measures from the nation’s central bank.
Japanese Prime Minister Yoshihiko Noda dissolved the parliament today. Most analysts believe that the major opposition Liberal Democratic Party will win the coming elections. Moreover, it is expected that the party’s leader Shinzo Abe will become the next prime minister. Such possibility is bearish for the yen as Abe was calling for the Bank of Japan to pursue more aggressive easing.
Experts do not think that Japan’s central bank will change its monetary policy this month. Though it is very likely that additional stimulus will be implemented next month.
USD/JPY jumped from 80.23 to 81.13 yesterday and remained near that level today as of 1:13 GMT. EUR/JPY climbed from 102.17 to 103.71 and GBP/JPY surged from 127.09 to 128.77 on the previous trading session and was stable at the beginning of the current session.
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