2024.10.28 [October 28] JPY weakens as uncertainty grows after ruling party loses majority
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Recap of previous trading day (October 25)
Last Friday, the USDJPY traded within the upper 151-yen to lower 152-yen range, reaching a low of 151.45 just after GMT 07:00.
The market was lacking momentum ahead of the general election on Oct. 27, but gradually rose after the NY market opened. It peaked at 152.37 around GMT 19:00 and ended the week at 152.25.
Recap of the Tokyo market and outlook going forward
The USDJPY gapped up at the start of Tokyo trading, starting at 153.18. Selling pressure on the yen accelerated after the ruling coalition failed to secure a majority in Sunday's general election, creating political uncertainty. It hit 153.88 after GMT 01:30 and is trading in the mid-153 range as of GMT 04:00.
Looking at the 1-hour chart of the USDJPY (as of GMT 03:35 on October 28), the Bollinger Bands have expanded following a squeeze, with the price hovering around the +2 standard deviation level. The market is watching closely to see if this uptrend will continue.
(20-period Bollinger Band, showing ±1 and ±2 standard deviations)
There are no closely watched economic indicators today.
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