After two days in office, Japanese finance minister Fujii has changed his tune on JPY strength. He seemed shocked that anyone would concluded from his repeated statements on a strong JPY being good for the Japanese economy that the markets concluded he favored a strong JPY.
We would imagine the minister has received a phone call or two from the likes of Sony and Toyota, suggesting he “recalibrate” his rhetoric.
The gulf between campaigning for office and governing can sometimes take a while to overcome. The DPJ will have some of those growing pains in the early days in power.
91.60/65 is key resistance near-term in USD/JPY, a break and close above that level ahead of the weekend will be a signal to many that we have put in a near-term USD/JPY bottom. Stops are eyed from 91.70 on up through 92.20, traders report.