• Japan exports, outright weakening somewhat on overseas slowdown but domestic demand holding up
  • Must be vigilant of risk Europe’s debt woes will hurt Japan, global economies
  • Fears of US double-dip recession have subsided but current market view of US economy may be too optimistic
  • Yen rise has more demerits than merits for current Japan economy given very high certainty over overseas economic outlook
  • BOJ will continue to offer monetary stimulus as much as possible
  • Don’t think BOJ’s forecast of 2.2% GDP growth for fiscal 2012/13 is too high

Reuters reporting.

USD/JPY sits at 76.90. Talk of buy orders clustered 76.50/60, including Kampo interest, stops below. Buy stops seen through 77.35.