Key Takeaways:
- 💹 In Japan, Prime Minister Shigeru Ishiba called a snap election for October 27
- 📉 The LDP’s approval rating has dropped, but the ruling coalition is expected to maintain majority
- 🗳️ Japanese general election is not expected to be a crucial driver for USD/JPY, US Presidential election may have more impact
- 💵 Under either administration, JPY-buying interventions may be accepted, but selling JPY (buying USD) could be difficult
- 📈 Citi is bearish on USD/JPY in the long term but predicts a recovery to around ¥150 by year-end
- 📊 The 350-day moving average is seen as a resistance line, with possible upside to the 100-day or 200-day lines in the near-term
- 💹 Citi believes USD/JPY has potential for upside if the Republicans win the midterm elections
- 📈 The currency pair could see gains if the Republicans maintain control of the Senate
- 🗳 Volatility expected around the elections could create trading opportunities in the USD/JPY pair
- 💹 Stock Market on October 8, 2024 saw gains with BSE Sensex climbing 584.81 pts and Nifty 50 gaining 217.40 pts
- 📈 Top gainers on the NSE included Trent, BEL, Adani Enterprises, Adani Ports, and M&M
- 📉 Top losers on the NSE were SBI Life, Tata Steel, Titan, Bajaj Finserv, and JSW Steel
- 💼 Hyundai Motor India’s IPO to open next week for subscriptions at a valuation of up to $19 billion
- 🔄 Kolte – Patil Developers appointed Ravi Porwal as Chief Financial Officer
- 📈 Olectra Greentech shares gained 5.49% on the NSE
- 🌍 Tata Motors Group global wholesales in Q2 FY25 were lower by 11%
- 💰 NTPC received an order for payment of Tax, Interest, and penalty under Finance Act 1994
- 💼 Flair Writing Industries received show cause notice for tax payment
- 🚗 Maruti Suzuki India Limited introduced the Grand Vitara Dominion Limited Edition
- 💸 Sheela Foam approved investment in House of Kieraya Ltd
- 📈 SFL shares climbed 3.99% on the NSE
- 💊 Top gainers of Nifty Pharma stocks were IPCA Labs, JB Chemicals, Glenmark, and Divi’s Lab
- 🏢 Allied Digital Services Ltd awarded Pune Safe City Project for installation of AI-enabled cameras
- 🎁 Blue Dart Express announced ‘Diwali Express’ limited-time offer for discounts on Diwali gift shipments
- 🌍 Mahanagar Gas signed indicative term sheet for proposed investment in International Battery Company Pvt. Ltd.
- 💱 USD/JPY pair experiencing volatile trading
- 🇯🇵 Japan holding snap elections on October 27
- 🇺🇸 US Presidential elections following Japan’s elections have potential bigger impact
- 💸 JPY-buying interventions more likely under both Harris and Trump administration
- 📉 Bearish outlook on USD/JPY in the long term, potential recovery to around ¥150 by year-end
- 📈 Resistance seen at 350-day moving average line around ¥149
- 📊 Near-term upside potential to 100-day or 200-day moving average lines around ¥151.5
Market Analysis and Updates:
The recent announcement of a snap election in Japan by Prime Minister Shigeru Ishiba has sparked interest in the political landscape and its potential impact on the USD/JPY currency pair. Despite a drop in the LDP’s approval rating, the ruling coalition is expected to maintain a majority, which may have implications for market stability.
Analysts predict that the Japanese general election may not be a significant driver for USD/JPY, with more focus on the potential effects of the upcoming US Presidential election. Both the Harris and Trump administrations could lead to JPY-buying interventions, but selling JPY (buying USD) might prove challenging.
In the long term, Citi maintains a bearish outlook on USD/JPY but anticipates a possible recovery to around ¥150 by the end of the year. The 350-day moving average serves as a resistance line, while short-term movements could see upside potential to the 100-day or 200-day lines.
Traders are advised to monitor the market closely for volatility surrounding the elections, with potential trading opportunities emerging in the USD/JPY pair. Additional developments in the stock market and various industries, including IPO launches and strategic investments, further contribute to the dynamic market environment.