Yen Down On Hopes Of More Stimulus By New PM Shinzo Abe
In early Asian deals on Thursday, the Japanese yen underperformed against other major major currencies on hopes of aggressive stimulus measures by new Prime Minister Shinzo Abe.
Abe took office yesterday following majority victory in the elections held earlier this month.
Abe pledged stronger easing measures to beat deflation and help revive the economy. Abe also called the Bank of Japan to adopt an inflation target of 2 percent to boost the economy.
The yen declined 0.18 percent to a new 2-year low of 85.79 against the greenback with 87.00 seen as the next support level. The pair closed yesterday's deals at 85.64.
Against the pound, the yen declined to 138.44 for the first time since April 2011. This is down 0.17 percent from Wednesday's close of 138.20. If the yen extends decline, it is likely to break 139.00 level.
The yen that closed yesterday's deals at 93.79 against the franc slipped to near a 16-month low of 93.99. On the downside, 94.5 is seen as the next target level for the yen.
The yen hit near a 17-month low of 113.52 against the euro and the next downside target level for the yen is seen at 114.00. The pair closed yesterday's deals at 113.26.
Against the Australian and NZ dollars, the yen slipped to a 10-day low of 88.94 and a 6-day low of 70.43, respectively. The yen may find next support levels at 89.5 against the aussie and 71.00 against the kiwi. At yesterday's close, the aussie-yen and the kiwi-yen pairs were quoted at 88.88 and 70.23, respectively.
The yen fell to a 20-month low of 86.39 against the Canadian dollar, compared to yesterday's close of 86.14. The next downside target level for the yen is seen at 87.00.
At 12:00 am ET, Japan housing starts data for November is due.
In the European session, Swiss UBS consumption indicator and U.K. mortgage approvals for November are slated for release.
The U.S. weekly jobless claims for the week ended December 22, consumer confidence index for December and new home sales for November are likely to influence trading in the New York session.
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