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Japan's Q3 GDP to be a Yen mover

FXStreet (Bali) - Japanese GDP data is coming up at 23.50 GMT, a critical event that will help Prime Minister Abe decide whether to delay or not a planned 2015 sales tax hike, given the resounding negative effects it had on the economy in the last Q2 GDP print.

Since today's Japanese GDP has garnered plenty of headlines, due to the implications it may have on Abenomics, it should be a mover for the Yen. While consensus seems to be that a disappointing GDP print will be a catalyst of Yen weakness on a tax delay play, an upbeat GDP may raise some last minute doubts on Abe sticking to planned 2015 tax hike.

However, with the tax delay partly/fully discounted in the near term, there might even be some appetite to play a buy rumour/sell fact on Yen crosses. should GDP come weak. On the flip side, if GDP were to come strong, traders are probably going to keep the Yen better bid at least until there is confirmation by PM Abe that the tax delay is confirmed.

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