Reports from the interbank have liquidity about as as good as the Sahara desert out there … i.e. very poor indeed. USD.JPY is dropping on Abe’s victory. It was expected, there is no surprise, so we have a ‘sell the fact’ response.
Its still very early in Tokyo and even earlier in Singapore and Hong Kong, so its going to remain thin and susceptible to rapid moves for some hours to come. I haven’t got much of an indication of the orderboard for the yen until those centres start.
Resistance initially 118.55/60 and initial support ahead of 118.00 – next support 117.45/55
Better chart of this morning’s activity:
