JPY: In consolidation mode as polls show big Abe win - ING

Analysts at ING suggest that with the dollar's short-term luck running out, USD/JPY looks to remain in consolidation mode.

Key Quotes

“Focus on the 22 Oct Japanese elections may narrow and a be a JPY factor to consider, though the latest polls suggest that Abe is heading for a big election win - which would be a major thumbs up to Abenomics. Indeed, if the Japanese PM could secure more than 310 seats, he would have the two-thirds majority needed to sign-off on constitutional amendments.”

“Domestic calendar sees Sep trade data (Thu). Our economists note that Japanese economic activity has been quite robust of late, which may in part be limiting JPY downside as it places less pressure on the current ultra-accommodative BoJ policy stance.”