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Check this one out, just received in todays news:
25 Aug 10: 23:43 GMT (SGA) - FX NOW! USD/JPY, AUD/JPY Flows - Ozawa to run in DPJ leadership vote against PM Kan
DPJ Kingpin Ichiro Ozawa says he will run for DPJ's leadership election next month on Sept 14, challenging PM Naoto Kan - Kyodo. The challenge will effectively means he will vie to be the next PM of Japan, to replace PM Kan. On FX, the above will only continue to weigh on Japanese markets, Nikkei, even as Japan is trying to "fend" off the surging JPY, which hit 15-year highs of 83.58 vs USD, 9-year highs of 105.44 vs EUR. USD/JPY at 84.77-80, off lows on Japanese, funds buying on dips, but interest to sell on rallies, as the political uncertainty will weigh on Nikkei, sentiment. The possible split within DPJ, may also hinder "united" government pressure on BoJ to come up with fresh measures to cope with JPY rise. USD/JPY at 84.77-80, up from 84.57, possibly knee-jerk reaction to the political news, but should dip again. Offers 84.80-85.00 from exporters, eye 84.00 again. AUD/JPY at 75.10-15, from 74.90-00, to dip.
As far as I can tell, this would only mean short-term down for Asian markets, up for Yen, so down for USDJPY.
But I agree Lighthouse, Yen strength seems a bit more uncertain than it would have been a few months ago with bad news. UJ likely to bounce any day means traders are wary.
