USD eased against JPY – BBH

After failing to sustain another attempt through JPY113 yesterday, the dollar has eased against the yen, and US Treasury yields are a tad softer, notes the analysis team at BBH.  

Key Quotes

“Last week, a shelf was created near JPY112.20.  In Japanese politics, Tokyo Governor and head of the new Party of Hope, Koike, has until October 10 to decide if she will run for a parliament seat.  She is an awkward position.  She was just re-elected Governor of Tokyo, and her party is not ready to fully challenge Abe and the LDP.  The new party does not appear to be contending a sufficient number of seats.  If she announces she will not run, as we suspect, the market interest may wane.  That said, we highlight that a dramatic loss of seats, even if it remains the largest party, could still pose problems for Abe.”