yen : Shinzo Abe's resignation raises concerns about political instability ~ (9month13day)

Focus:
•Key trend line support115.60
•Risk sentiment continues to be the biggest support for the yen

The yen fell at the beginning of news of Shinzo Abe's resignation, but later regained some ground as the euro hit a record high against the US dollar. In the year since Shinzo Abe took office, government scandals have been rampant, with the ruling coalition facing the Senate The election was defeated, and recently, due to Japan's support for the US military's mission in Afghanistan, Abe has faced another political crisis.52Shinzo Abe, who is years old, is Japan's youngest Prime Minister after World War II. He recently reorganized his cabinet at the end of last month with the aim of Revitalizing public support, but a poll this week showed that its support hovered around30%Below. The news of Abe's resignation has sparked investors' concerns about political instability, with the Japanese stock market falling and the yen briefly declining.

The yen hovered narrowly on Wednesday114Near the level, trapped in a stalemate. As seen in the indicators,RSIShowing an upward trend, whileSTCHowever, it maintains a downward trend, with the two indicators showing relative trends, and it is estimated that the future trend will still be reversed Cover. Support should focus on25Balance moving average position115.45Horizontal, in addition,115.50by7Monthly low123.66The position of the trend line that has been extended to this day, if it breaks, key support can be seen afterwards 116.60and117.00Horizontal. If the yen can return again114Below the horizontal level, it can be seen that the yen is still repeatedly tested, with greater resistance seen in the downward trend line112.40Horizontal and112Pass, Extension The extension will be extended to111.20Horizontal. and8The high point reached in the month111.60The level can also serve as a closer reference, and if the increase increases, it is expected to be an important challenge target110and109Horizontal.
**Suggested strategy: 115.20Buy yen,116.00Stop loss,112.20Closing target

Related news:
Japan Broadcasting Association(NHK)Reported that Japan's ruling Liberal Democratic Party may9month19New leaders were elected on the day to succeed outgoing Prime Minister Shinzo Abe. As the ruling coalition in Japan is led by the Liberal Democratic Party, the new leader of the Liberal Democratic Party is the natural candidate to succeed as Prime Minister.
According to data released by the Japanese government on Wednesday,8Consumer confidence deteriorated for the fourth consecutive month. The Cabinet Office investigation shows that,8Monthly average household consumer confidence index drops to44.0Below7Of44.4。

(Analysis provided by Zongheng Huihai Research Department | www.MW801.com )