We've seen a big demand for JPY in the wake of the sales tax hike delay 1 June
As I highlighted in my previous post yen demand now picking up in the wake of Abe's sales tax hike delay.
USDJPY 110.05 in a hurry from 110.55 after triggering stops through 110.50 and 110.30 .
Demand/support at 110.00 the next hurdle with bids/support at 109.75 behind that. Rallies now should be limited to 110.50-80. Yen demand across the board helping to put downward pressure on core pairs.
Nikkei still falling and now down -1.35%.
Market perception appears to be that Abenomics is running out of ammo for further easing and/or a relief that the fragile economy will not be subject to further taxation at this time.
