Japan PM Abe: Decided to delay sales tax increase by 2.5 years

Japanese PM Shinzo Abe came out on the wires via Bloomberg and finally announced his decision on the sales-tax hike postponement this Wednesday.

PM Abe decided to delay sales tax increase by two and a half years, as widely speculated by the yen markets.

In response to the announcement, USD/JPY rebounded sharply from a dip to 110.55 levels and retested 110.80 resistance, before easing slightly to now trade around 110.69, unchanged for the day.