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USD/JPY gaps up as PM Abe wins election

Japanese voters supported current PM Abe on the weekend. That means at least a couple more years of Abenomics, even though BOJ governor Kuroda may not be selected for the second term next year. Stocks liked this and yen was sold.
At least initially. USD/JPY gapped 30 pips at the open and extended that by about 25 pips but it was backing a filling from there. A late round of risk aversion took the pair down to the 113.25 support, from where it bounced. 114 is the the first stronger resistance.
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Bank of Japan Governor Kuroda speech at the Meeting of Councillors of Nippon Keidanren (Japan Business Federation) in Tokyo

  • Exports, output increasing as emerging market demand recovers
  • Japan economy now able to move forward supported by tailwinds from global economic recovery
  • Extremely important for Japan's economy for companies be innovative, create demand for new products and services
  • 10-yr JGB yields have been stable around zero pct even as long-term rates in many other countries rose, showing BOJ's yield curve control exerting intended effects
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Japan's ageing citizenry and its effects on policy

by William Pesek available on The Japan Times
As Kuroda struggles to drive the economy toward inflation, he’s running into a roadblock
35 million people deep. Japan’s 65-plus generation isn’t buying homes, cars, Sony
PlayStations or lavishing fixed incomes on fashion, pricey meals and travel.
(...)
The question is how Japan pays its growing debt with fewer people after that? (...) Japan’s
hopes of creating a productivity generation will require a policy revolution Abe has so far
avoided. A socie
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Всё может быть.

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BoJ Kuroda's Press conference Nov. 5th 2013

http://www.boj.or.jp/en/announcements/press/koen_2013/data/ko131105a1.pdf
Here is Kuroda's press conference today. He is really optimistic and in favor of the bank's QE. Today could get interesting with European open soon and then the US later.
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