USD/JPY after Abe's victory: Heading up to 105.00?
Monday in Asia was very moved in terms of financial markets, as the current Japanese PM Shinzo Abe secured a majority in the upper house and that could strengthen the so-called “Abenomics”, adding more stimulus to the national economy. After the news, Nikkei index rose more than 4% approximately, helping to give fresh bearish momentum to the JPY currency against others and it contributes to the Nippon exporters. Nothing has been said about exact days for the new measures to be done, but Abe already ordered to its Financial minister to prepare them.
The technical picture for USD/JPY at H1 chart is very bullish, as the pair did a consolidation above the 200-SMA and its looking to test the resistance level of 103.29, where a bearish trend line projected from May 31th highs could add pressure to the downside. If the USD/JPY achieves to break it, then we can expect a rally to the 104.00 psychological zone.