USD/JPY trading sideways after weekend elections
The Japanese PM won the expected majority in weekend elections but early attempts to buy USD/JPY have failed and the pair is sitting close to Friday’s closing levels.
The short-term range edges are at 99.80/100.80 and we can expect to see stop-losses either side. Dealers are moderately bearish in the short-term, saying that the market was long heading into the event and the most immediate danger is for a buy-the-rumour-sell-the-fact conclusion.
I’m not getting involved in USD/JPY at the moment; I’m overall bearish on the USD but I’m unsure what the Yen crosses will do.