Flash: USD/JPY pullbacks viewed as buying opportunity – UBS

FXstreet.com (New York) - Research Analyst Gareth Berry at UBS outlines the fallout of the Japanese election and its effect on the USD/JPY this week

Key quotes

“Despite the muted market reaction so far, we would view any post-election pullback in the USD/JPY as a buying opportunity.”

“The government is now in control of both parliamentary chambers, and so the stage is set for fresh fiscal initiatives combined with the introduction of longer-term growth-enhancing structural reforms.”

“That's not to suggest that the Bank of Japan is out of ammunition though. BoJ Policy Board member Sato stressed overnight that the Bank would not hesitate to take fresh steps if unexpected risks to the recovery materialize.”