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Currency Analyst since 2010

JPY: watch the outcome of elections

Many analysts think that the fate of yen depends on the outcome of Japanese upper house elections on July 21.

If Prime Minister Shinzo Abe’s Liberal Democratic Party (LDP) wins, it could “stoke yen selling by overseas hedge funds who may interpret it as a green light from the Japanese public for Abenomics to continue for the 3 three years.,” says Mitsubishi UFJ Morgan Stanley Securities.

NAB: “If the Japanese stock market responds positively to that [an Abe win], that could be the catalyst to make USD/JPY finally settle above 100 and make progress towards the 105 area.”

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