26 Sep 2013
Yen collapses on corporate tax cut talk
FXstreet.com (Barcelona) - The Japanese Yen is weakening across the board following headlines from Kyodo news, saying "Japan stimulus steps to have pledge to study corporate tax cut", referring to cuts in corporate tax rate.
The headline is not sitting well for those long Japanese Yen, with heavy buying interest emerging immediately afterwards, as the Nikkei 225 in Japan also recovers the bid tone to now be flat from a 1.3% down. Earlier on the day, LDP’s Noda said PM Abe is due to announce economic measures, including the VAT, corporate tax and other stimulatory measures, on October 1.
Looking at key levels, the latest fundamental-led spike has changed the technical landscape quite a bit, with buyers now pushing towards the 99.00 round number, level that coincides with first pivot resistance (London open) ahead of trail up stops 99.20+.
The headline is not sitting well for those long Japanese Yen, with heavy buying interest emerging immediately afterwards, as the Nikkei 225 in Japan also recovers the bid tone to now be flat from a 1.3% down. Earlier on the day, LDP’s Noda said PM Abe is due to announce economic measures, including the VAT, corporate tax and other stimulatory measures, on October 1.
Looking at key levels, the latest fundamental-led spike has changed the technical landscape quite a bit, with buyers now pushing towards the 99.00 round number, level that coincides with first pivot resistance (London open) ahead of trail up stops 99.20+.