Intraday analysis: USD/JPY hits 15-year low on Kan vote win

NEW YORK (Forex News Now) – The yen jumped to a 15-year high against the dollar on Tuesday, after the Japanese prime minister, Naoto Kan, fended off a challenge to remain leader of Japan’s ruling party.

In European morning currency market trading, USD/JPY hit 83.07, its lowest since 1995. The currency pair later rose slightly to trade at 83.31, down 0.47 percent on the day.

Kan’s victory over Democratic party colleague Ichiro Ozawa meant he would stay on as premier, ensuring greater policy stability.

According to USD JPY analysis, USD/JPY was likely to touch support around 83.07 and encounter immediate resistance around Monday’s high, 84.36.

The yen’s gains also came ahead of a key report on U.S. retail sales, which was expected to show that this important gauge of consumer spending rose in August, and important data on U.S. business inventories.

Elsewhere, the yen also advanced versus sterling: GBP/JPY traded at 128.34, down 0.64 percent, according to intraday analysis.

By ForexNewsNow Team

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