Japan chief cabinet secretary Matsuno says that he believes the improvement in the BOJ Tankan reflects a gradual recovery of the economy, but will continue to closely monitor trends in overseas economies and prices.
He's right about the improvement in the economy, that's what the release of today's survey showed:
The inflation expectations part of the survey is interesting for those watching Bank of Japan monetary policy. Companies are not convinced inflation is going to drop under the BOJ's 2% target. For the next five years!
USD/JPY today is behaving like the BOJ will hold onto loose policy though, making its way back higher:
