• Exports likely to resume gradual rise
  • Closely watching short-term interest rates
  • Output likely to turn positive
  • Commodity prices likely to continue rising gradually
  • Long-term interest rates in Japan lower than other countries due in part to BOJ easing (that would do it)
  • Hope price rise will be accompanied by economic growth
  • Outlook for end of deflation remains intact
  • No change to stance of keeping zero rates until price stability is foreseen
  • Should not read too much into Japan debt cds moves
  • Efforts for fiscal sustainability needed regardless of cds moves

USD/JPY very steady in early European trade, presently at 82.45. Talk of stops through 82.30 and 82.00. Sell orders still clustered up around 83.00. Buy stops through 83.15.