USD/JPY: Buy Yen on Hope – Goldman Sachs

Bloomberg reporting the latest insights from Goldman Sachs on the Japanese election and Yen price-outlook.

Key Quotes:

“Little is yet known about Japan's new national opposition party, any gains in polls for the group led by Tokyo Governor Yuriko Koike should be good for the yen,

The bottom line for FX markets is that dollar-yen should tend to be negatively correlated with polling results for Hope (name of Koike's Party of Hope), at least until the party's views on monetary policy become clearer

Prime Minister Shinzo Abe is still most likely to win

Given 'Hope's' change/reset campaign message, "we believe a victory would call into question the sustainability of the BOJ's easy stance, and open the field of candidates" for BOJ chief”