Japan Cabinet Office economic report keeps assessment on the overall economy unchanged

Economic report from the Cabinet Office. In summary (via Reuters):

• cut its view on factory output for the first time in six months as global demand for semiconductors is pausing
• kept its assessment on the overall economy unchanged by saying it was “improving moderately”
• “If China’s infection situation impacts on supply chains or trades, it could also impact on Japan’s economy as we’ve seen earlier this year,” a Cabinet Office official said.
• upgraded its view on business sentiment for the first time in a year to say it was showing signs of recovery
• left its view on private consumption unchanged saying it was moderately picking up
• capital spending seen recovering
• The report reiterated that the government expects the Bank of Japan to achieve its 2% price target stably based on the economy, prices and financial situation.

USD/JPY volatility is likely to persist after the BOJ shock yesterday:

ICYMI:

• ForexLive Asia-Pacific FX news wrap: BOJ pivot sends the yen rocketing higher across board

Follow through for the yen in Europe and America times:

• ForexLive European FX news wrap: Yen flying high after BOJ policy tweak
• Forexlive Americas FX news wrap: Yen hits new highs as the BOJ fallout continues

More:

• BOJ YCC pivot shock: "USD/JPY could be into the 120’s sooner than we expected" says MUFG
• BOJ YCC shock pivot - "risks remain skewed to the downside for USD/JPY"