One of the first headlines following the election returns over the weekend was from the presumptive Prime Minister back-tracking on his anti-American rhetoric used during the campaign. After saying that Japan needs to distance itself from the US during the run-up to yesterday’s vote, Hatoyama, the DPJ leader, quickly embraced the US.
During the campaign, the DPJ also embraced a strong JPY. Now in power, they may rethink that stance as well.
USD/JPY is up at 96.25 after bottoming ahead of 92.50 overnight. Stops are seen above the 93.60 level.
