Ratings agency Standard & Poors just out on reuters

  • Japan’s budget deficit is shrinking but can’t be secure in pace of decline
  • doubtful about scale of welfare reform and how much spending can be cut

Reiterating their concerns

USDJPY currently on session lows at 98.63

Add:

  • even if PM Abe’s policies go well it’s still not enoughto reach primary deficit target in FY 2014
  • if budget deficit doesn’t shrink this could be grounds for a downgrade