With DXY bid and a new Prime Minister, the YEN is weakening. I think a softening of the tone of the hawks at the Ministry of Finance and Bank of Japan, thanks to the PM, will be good as rates need to normalise, not go up. Market rates that is.
We’re expecting a test of 152.50 at the uptrend resistance, and a break higher to the top of the new trend at 156.00/157.00 where intervention could occur.
We’re not thinking this starts a new trend for the USD, just for USD/YEN. AUD/USD remains undecided. Below 149.40 negates this view.