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USD/JPY Forecast 12 July 2016

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USD/JPY Forecast 12 July 2016
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USD/JPY showed the sharp growth yesterday.

The pair showed an increase due to the victory of the current party in the elections. The yen added 225 points.

Japan's Liberal Democratic Party won 59.92% of the seats. News agencies report that the growth of the market is associated with trust to the government, but this is unlikely to correspond to the reality.

Shinzo Abe is ready to hold a national referendum to amend the Constitution to allow Japan to have an army and navy.

The Prime Minister has promised to introduce a new stimulus package for 10 trillion yen without any clarifications.

In fact, the markets grew on a simple verbal intervention.

We define the local purpose of the pair at 104.00. Fixing above this level will trigger the growth to the 105.00 area.

How to trade

We would buy call options if the pair rises above 103.60. We would buy put options if the pair falls below 102.60.

Expiry time: 20:00

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.

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