FXstreet.com (Barcelona) - According to Research Analyst Gareth Berry at UBS, “Weekend comments out of Japan provided the first clear guidance on where the incoming administration would like to see USD/JPY trade” – Prime Minister-elect Abe stopped short of giving a precise level but noted that as far as corporate profitability is concerned "it makes a big difference whether the yen is at 80 to the dollar, or at 90 to the dollar".
Ishiba (the LDP's No. 2) went further still. Referring to the USDJPY he said "we need to think about how to maintain it at 85-90". Elsewhere, there was the now-familiar pressure on the BoJ to pursue bolder monetary easing. Abe said that if the BoJ does not adopt a 2% inflation target at the Jan. 21-22 meeting, then BoJ Law will be revised, and a "policy accord will be set up with the central bank to agree on an inflation target".
Abe also described what he would be looking for in a new BoJ Governor after Shirakawa's term ends in April - he said he'd "like to have someone who agrees with our view". There was no yen reaction to these remarks, and FX markets were very quiet throughout the Asia session. Today's economic data calendar is virtually empty as the holiday season gets underway.
Ishiba (the LDP's No. 2) went further still. Referring to the USDJPY he said "we need to think about how to maintain it at 85-90". Elsewhere, there was the now-familiar pressure on the BoJ to pursue bolder monetary easing. Abe said that if the BoJ does not adopt a 2% inflation target at the Jan. 21-22 meeting, then BoJ Law will be revised, and a "policy accord will be set up with the central bank to agree on an inflation target".
Abe also described what he would be looking for in a new BoJ Governor after Shirakawa's term ends in April - he said he'd "like to have someone who agrees with our view". There was no yen reaction to these remarks, and FX markets were very quiet throughout the Asia session. Today's economic data calendar is virtually empty as the holiday season gets underway.
