Forex News: Yen Trades Lower on Japan Election Outcome
THE TAKEAWAY: Shinzo Abe becomes new Japan Prime Minister > Abe has called for inflation and currency debasement > Yen trades lower
The Japanese Yen gapped lower over the weekend as Shinzo Abe became the new Prime Minister of Japan. Abe has recently urged the Bank of Japan to pursue massive stimulus efforts to debase their currency and put an end to deflation. Abe’s dovish policy may prompt Forex traders to sell the yen which may be favorable to borrow against higher yielding carry currencies.
USD/JPY, 15 Minute Chart