Flash: JPY fallout in Japan after weekend elections – Investec

FXstreet.com (New York) - Elections in Japan over the weekend went pretty much as forecast with the coalition getting a majority in the Parliament’s Upper House and President Abe reassuring the markets over his “Abenomics” policies, notes Corporate Treasury Lee McDarby at Investec.

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However, “The LDP’s failure to secure an independent majority has resulted in a flurry of JPY buying as investors remain unsure how to position themselves. Abe wants public confidence to remain in economic reform as they look for a strong export driven recovery.”

“Given how long Japan has stagnated this very much feels like a final throw of the dice to trigger economic revival. Abe will be hoping that his great plans begin to bear fruit sooner rather than later.”