Commentary by Kengo Suzuki, chief currency strategist at Mizuho Securities
He says that "it's unthinkable" to see currency moves lasting longer on Japanese politics, arguing that there is doubt about the sustainability of incentives to sell a rebound on USD/JPY on the back of pressures calling for finance minister Aso to resign earlier.
Adding that global stocks are regaining stability following the turmoil in February and that concerns over US trade policy have started to ease, as the more prominent factors at play in the market at the moment.
He also says that he doesn't anticipate the Moritomo issue to sustain long enough to spell an end for Abenomics.
His view here is one shared by BTMU as well. Naohiro Nomoto, a manager at the firm's FX trading department says that foreign funds may look to Japanese politics for their yen-buying strategy by says such a move may not be sustainable.
Nomoto also echoes the same sentiment by Suzuki in saying that a secnario where there is an end to Abenomics is "unreasonable".
Well, USD/JPY has already recovered some of its poise following Aso's comments that he won't resign and is still inching upwards on the day - now at 106.72. The pair is still lower compared to Friday's close but is well off the lows today of 106.36.
