ForexTime - Analytics

ForexTime

792.25 5.75/10
76% of positive reviews
Real

Yen jumps as Abe steps down

Yen jumps as Abe steps down

The Nikkei 225 ended the week lower by 1.4 percent and the Japanese Yen broke to the stronger side of the 106 psychological level against the US Dollar, as Prime Minister Shinzo Abe announced his resignation today due to health concerns. Just this week, the 65-year-old Abe had marked his legacy as Japan’s longest-serving leader, and will continue on until a successor is chosen.

Yen jumps as Abe steps down

 

Global investors will be eyeing this development through the lens of policy continuity, with questions framed around Abenomics in particular. This leadership transition arrives as the Japanese economy is still dealing with the negative impact from the pandemic. Longer-term concerns may also arise over how Japan can navigate ties with major economies such as the US and China in a post-Abe era.

Such a doubt-mired outlook lends itself to this knee-jerk sell-off mode in Japanese assets, with USDJPY set to face more volatility in the short-term. However, any instability and volatility that may arise from a leadership transition are expected to be transitory once global investors have a firmer grasp on Japan’s policy outlook.

 

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.


To leave a comment you must or Join us


By visiting our website and services, you agree to the conditions of use of cookies. Learn more
I agree