- Japan fiscal reform basically depends on boosting demand
- Should review budget in view of fact cash reserves in special accounts are limited
- Must work with BOJ to bring yen to appropriate levels
- Many Japanese firms in favour of USD/JPY at around 95 yen
- Never believed fiscal austerity good
- Japan has barely won market confidence by keeping to 2010/11 new JGB issuance target
- Expects state-backed turnaround body to back JAL
- Must avoid double-dip recession with help of monetary policy
USD/JPY has been as high as 92.86 so far, presently slightly off high at 92.75. Before the Kan comments I had heard reports of stops placed just above 93.00 and 93.30.
