Investing.com - The U.S. dollar jumped to a 20-month high against the yen on Monday after a victory for Japan’s Liberal Democratic Party in elections on Sunday fuelled expectations for more aggressive easing steps by the Bank of Japan.
USD/JPY hit 84.31 during late Asian trade, the pair’s highest since mid-April 2011; the pair subsequently consolidated at 83.92, gaining 0.47%.
The pair was likely to find support at 83.31, Friday’s low and resistance at 85.49, the high of April 7, 2011.
The LDP and its coalition partner secured a two-thirds majority in Sunday’s election, which will allow the new government to override the upper house and easily pass its policies.
LDP leader Shinzo Abe has called for unlimited easing by the BoJ in order to meet the bank’s 2% inflation target and spur growth in the recession hit economy.
Investor focus turned to the upcoming BoJ policy meeting on Thursday, amid expectations that the central bank will implement further easing measures.
The yen was trading close to eight-month highs against the euro, with EUR/JPY up 0.60% to 110.54.
Later Monday, European Central Bank President Mario Draghi was to appear before the Committee on Economic and Monetary Affairs in Brussels to give testimony on the economic outlook.
USD/JPY hit 84.31 during late Asian trade, the pair’s highest since mid-April 2011; the pair subsequently consolidated at 83.92, gaining 0.47%.
The pair was likely to find support at 83.31, Friday’s low and resistance at 85.49, the high of April 7, 2011.
The LDP and its coalition partner secured a two-thirds majority in Sunday’s election, which will allow the new government to override the upper house and easily pass its policies.
LDP leader Shinzo Abe has called for unlimited easing by the BoJ in order to meet the bank’s 2% inflation target and spur growth in the recession hit economy.
Investor focus turned to the upcoming BoJ policy meeting on Thursday, amid expectations that the central bank will implement further easing measures.
The yen was trading close to eight-month highs against the euro, with EUR/JPY up 0.60% to 110.54.
Later Monday, European Central Bank President Mario Draghi was to appear before the Committee on Economic and Monetary Affairs in Brussels to give testimony on the economic outlook.