Flash: USD/JPY could reclaim 100.00 soon – UBS

FXstreet.com (New York) - Prime Minister Abe's party and his political allies together won an overall majority in regional elections held over the weekend in the Tokyo metropolitan area.

According to Gareth Berry, a Research Analyst at UBS, The outcome bodes well for the prime minister's prospects in the upcoming Upper House elections, which are likely to be held on July 21 – that in turn is good news for USD/JPY.”

Securing a solid political platform is a necessary condition for the introduction of far-reaching structural reforms, and the prime minister seems well on his way to achieving this. “Other supportive factors are also neatly falling into place, suggesting USD/JPY could reclaim 100 soon, then advance towards our end-2013 forecast of 110.”

EUR/CHF eyes June lows

EUR/CHF is meeting the support line with momentum slowing ahead of 1.2230 and EMA50. However, shorter term readings are bearish with RSI at 14, trading below the pivot point. June lows are in sight and closes below could bring in the psychological level 1.2200 at risk for break out to test January lows again.
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Flash: Higher US yields supporting USD/JPY - BTMU

Lee Hardman, FX analyst at the Bank of Tokyo Mitsubishi UFJ notes that the US dollar is continuing to benefit from last week’s less dovish than expected FOMC meeting at which Fed Chairman Bernanke set out a clear timeframe for bringing QE to an end.
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