Disappointment over Abe’s “Third Arrow” weighs on USDJPY
PM Abe’s announcement of the “third arrow” of his economic plan disappointed markets. Details were sketchy with the blueprint outlining the establishment of special economic zones as part of the economic growth plan, attracting overseas technology, human resources and funds and raising per capita by 3% p.a. or more over the next 10 years. USDJPY traded below the 100 level following the speech. The Nikkei too sank back into the red. Our technical team notes that 98.62 is now key support on USDJPY. The unit remains within its bullish channel with trendline support at 98.44.
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BNP Paribas