- Most immediate concern is comprehensive tax reform programme expected in June
- Greater than expected Japan govt debt trajectory not enough for immediate negative action
- Expects combination of shift in spending cuts and tax rises for Japan reconstruction
- Japan fiscal deficit, govt debt are bottom line for sovereign rating
USD/JPY has traded a little firmer this morning, presently at 81.85. US treasury yields are firmer this morning, that’s gotta help.
Talk sell orders 81.90/00, buy stops just above there.