USD/JPY: Limited Impact From Snap Election If Abe Maintains Majority: Where To Target? – Danske

Danske FX Strategy Research argues that the upcoming general election in Japan on 22 October should not have a significant impact on USD/JPY if Shinzo Abe maintains his majority in the Diet following the election, as this is widely expected and priced in the FX market.

"However, we still see USD/JPY moving higher in coming months supported by strong global PMIs and a potential Fed rate hike in December," Danske adds.

Danske target the cross USD/JPY 113 in 1M and 114 in 3M.

Source: Danske Bank ResearchOriginal Article