Breaking: USD/JPY jumps above 110.00 as Japan’s PM Suga likely to resign

FXStreet Team FXStreet

Japan’s Prime Minister Yoshihide Suga is likely to resign, Reuters reports, citing headlines from the Kyodo news agency.

The Japanese media outlet reports that PM Suga will not run in the leadership vote for his party this month.

Additional headlines hitting the wires suggest that Suga will step as a PM down on September 30 and is said to spend his time until then focusing on measures to address the coronavirus pandemic and associated economic damage.

Market reaction

USD/JPY initially slipped to 109.79 before bouncing sharply to recapture the 110.00 level, in an immediate reaction to the Japanese political news. The spot is last seen trading at 110.01, up 0.08% on the day.

Meanwhile, the Japanese benchmark index, the Nikkei 225 is jumping over 1.5% to recapture 29,000 on expectations of a fresh economic stimulus package from the new leadership.

Investors await the US NFP data for further impetus while keeping an eye on Japanese politics. Japan PM Suga is due to speak around 0400 GMT, per the Jiji news agency.

On Thursday, the Japanese ruling Liberal Democratic Party (LDP) Policy Chief and Suga’s rival, Fumio Kishida, said: “An economic stimulus package worth "tens of trillions of yen" was needed to combat the coronavirus pandemic.”

USD/JPY: 15-minutes chart

USD/JPY: Technical levels to watch

USD/JPY

Overview
Today last price	110.02
Today Daily Change	0.08
Today Daily Change %	0.07
Today daily open	109.94

Trends
Daily SMA20	109.94
Daily SMA50	110.09
Daily SMA100	109.7
Daily SMA200	107.79

Levels
Previous Daily High	110.12
Previous Daily Low	109.92
Previous Weekly High	110.27
Previous Weekly Low	109.41
Previous Monthly High	110.8
Previous Monthly Low	108.72
Daily Fibonacci 38.2%	110
Daily Fibonacci 61.8%	110.04
Daily Pivot Point S1	109.87
Daily Pivot Point S2	109.79
Daily Pivot Point S3	109.66
Daily Pivot Point R1	110.07
Daily Pivot Point R2	110.2
Daily Pivot Point R3	110.28

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

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