- CAPEX expected to increase ahead
- Do not think yen carry trade growing in any major way
- BOJ’s economic view somewhat more positive than before
- No direct link between monetary and fiscal policies
- Sustainability of economic pick up becoming clearer
- Corporate profits improving steadily
- Risk of double dip recession quite small
- Tankan showed inprovement in sentiment broadening
- Improvement in supply-demand balance will help narrow falls in consumer prices
- Financial environment improving more than last month
- Japanese firm’s views on retail prices to improve gradually
- Worsening in job market is coming to a halt
- Economy moving in better direction than in January
- Will decide on April 30 if to upgrade BOJ’s main economic forecasts
- Important to pay attention to impact on financial system when reforming Japan Post
Meanwhile the benchmark 10 year JGB yield rose to 1.405% in the wake of the upbeat comments, it’s highest level since November 12.
USD/JPY lower this morning, down at 93.83 from early 94.18. Talk of stop loss sell orders gathering below 93.50.