FXstreet.com (Barcelona) - There is still well-founded expectation of more easing to come by the BoJ as USD/JPY regains the 80.00 handle. On the NFP front, according to Bank of Tokyo Mitsubishi UFJ, "given the expectation of an employment improvement post-QE3, NFP above the 118K consensus should see USD/JPY getting more support to shift further up above the 80 level."
The Bank adds: "An Obama win in Tuesday’s US presidential elections should see more stability for markets given maintenance of the status quo while a Romney win should be more USD/JPY-supportive. There is talk of Bernanke stepping aside if Romney wins but we think he is likely to go only after his term is up in January 2014. Romney would not want to cause disruptions to the market if Bernanke were to leave. Once the recent 25th June high of 80.63 is triggered, USD/JPY looks poised for 81 level."
The Bank adds: "An Obama win in Tuesday’s US presidential elections should see more stability for markets given maintenance of the status quo while a Romney win should be more USD/JPY-supportive. There is talk of Bernanke stepping aside if Romney wins but we think he is likely to go only after his term is up in January 2014. Romney would not want to cause disruptions to the market if Bernanke were to leave. Once the recent 25th June high of 80.63 is triggered, USD/JPY looks poised for 81 level."
